FX.co ★ EUR/NZD - Elliott Wave Analysis for August 28 - 2012

Today's Support and Resistance Levels:

S1: 1.5395 R1: 1.5492

S2: 1.5323 R2: 1.5555

S3: 1.5270 R3: 1.5620

Technical Overview:

The correction in red wave 2, which began at 1.5442, is pretty complex in character, but we should soon see a break below 1.5409 and more importantly 1.5383, which will confirm the decline towards 1.5195 as the ideal target for red wave 2. At 1.5195 red wave 2 will have a correction of 50% of red wave 1 and, at the same time, 1.5195 marks the bottom of red wave iv, which is a very common target for a correction of one larger degree.

As long as support at 1.5409 has not been broken, we should think of one more new high near 1.5505, which was the original target for red wave 1, but not much more than that.

Trading Recommendation:

You should be short EUR against NZD from 1.5420 with a stop at 1.5525. Take profit on the short EUR position at 1.5205. If you are not short EUR already, you can sell EUR upon a break below 1.5409 (sell at 1.5400) with the same stop and take profit.