FX.co ★ EUR/NZD - Elliott Wave Analysis for October 2 - 2012

Today's Support and Resistance Levels:

S1: 1.5508 R1: 1.5627

S2: 1.5453 R2: 1.5702

S3: 1.5383 R3: 1.5752

Technical Overview:

The break above 1.5565 has eased the downside pressure considerably. It is the first indication of the correction of 1.5902 might have found its bottom with the small spike down to 1.5453. That was just slightly above our first target at 1.5437. However, we need a break above 1.5627 to ease pressure and have a more serious indication of a bottom.
Looking at the rally from 1.5453 we can see that it has impulsive character. It makes us even more alert to the fact that the correction from 1.5902 should be over. If it is so, it is most likely we would see a continuation higher towards 1.5633 (just above our warning line). It should set the stage for a minor setback towards the 1.5521 - 1.5542 area from where the next rally lifts us higher towards 1.5752 and above 1.5902.
In the long term, we should look for a continuation higher towards at least 1.6390 and more likely towards the top at 1.6969 before wave 3 might end.

Trading Recommendation:

Our stop at 1.5570 was taken out. Now we will be focused on the upside and buy EUR at 1.5545 with a 1.5453 stop.