FX.co ★ EUR/NZD - Elliott Wave Analysis for September 18 - 2012

Today's Support and Resistance Levels:

S1: 1.5779 R1: 1.5902

S2: 1.5737 R2: 1.5999

S3: 1.5703 R3: 1.6063

Technical overview:

The odds still favor that we saw a bottom of wave 2 at 1.5578 and that wave 3 towards at least 1.6523 have begun. However, we have not yet seen a break above the wave 1 high at 1.5902, but once this high is broken, there should be no more hesitation. As long as we have not broken above 1.5902, there is a risk of the wave 2 correction to turn into a more complex correction, but at this point we view that possibility as minor.

In short-term, we could see a reaction back to 1.5778 to gather momentum before the break above 1.5902 sends us higher towards 1.5975 and 1.6211. Any break above the base channels resistance line will indicate, that wave 3 extends and then we should look for much higher levels, 1.6523.

Trading Recommendation:

We are long EUR from 1.5805, but if you have not bought EUR yet, you can buy at 1.5800 or upon a break above 1.5902 (one order cancels the other) with at stop at 1.5575. Be ready to raise your stop as soon as youe are in safe position.