FX.co ★ EUR/NZD - Elliott Wave Analysis for October 1 - 2012

Today's Support and Resistance Levels:

S1: 1.5437 R1: 1.5566

S2: 1.5383 R2: 1.5627

S3: 1.5326 R3: 1.5702

Technical Overview:

The complex wave 2 correction is still ongoing. We are still looking for a move to the 50% correction-target of wave 1 at 1.5437 and possibly even a decline to the 61.8% correction-target at 1.5326 before this wave 2 correction finally finds its low. That proves that we are beginning to see some underlying weakness for this wave 2 correction, so as we approach the 50% correction-target, we should look carefully for signs of a possible bottom.

In a short-term we should now see resistance at 1.5526 and more importantly at 1.5563, which ideally should hold for the test of 1.5437 and maybe even lower. A break above 1.5563 will ease the downside pressure, but only a break above 1.5621 will indicate that a bottom already could be in place.

Trading Recommendation:

We are short EUR from 1.5500, move our stop down to 1.5570 and take 50% profit at 1.5440 and 50% profit at 1.5350.