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

Today's Support and Resistance Levels:

S1: 1.5433 R1: 1.5544

S2: 1.5385 R2: 1.5627

S3: 1.5323 R3: 1.5701

Technical Overview:

The correction from 1.5902 has become more complex with the break below 1.5569. We did have our doubts about the rally from 1.5569 as it lacked impulsiveness, but the break below 1.5569 was the real game changer and we will now look for a deeper correction towards 1.5433 as the first downside target, but we would not be surprised to see an even deeper correction towards the 61.8% correction target of wave 1, which comes in at 1.5323.

As our focus is again turned towards the downside, we will look for possible low-risk short-term selling opportunities. However, it should be remembered, that we are in a correction and corrections are notoriously difficult to trade.

Trading Recommendation:

Our stop at 1.5565 was taken out yesterday and we will now look for what we think is low-risk selling opportunities. We will sell EUR at 1.5500 with a 1.5590 stop and take profit at 1.5350.