FX.co ★ EUR/NZD - Elliott Wave Analysis for October 4 - 2012

Today's Support and Resistance Levels:

S1: 1.5713 R1: 1.5777

S2: 1.5668 R2: 1.5850

S3: 1.5579 R3: 1.5898

Technical Overview:

Wave iii has already extended and has reached for 2 times the length of wave i. This is a very common extension target for a third wave, and therefore we could already have wave iii in place. If this is the case, we should see a more prolonged correction towards the 1.5570 - 1.5584 area. However, if a shallow correction to 1.5716, as we have seen until now, is all we get, then we should see wave iii continues its move towards 1.5898, before a more decent correction begins. We have to be patient in order to see what is in store for us. No matter the outcome will be, a break below 1.5558 will not be allowed.

Trading Recommendation:

You should be long EUR from 1.5545. Lift your stop to 1.5555. If you are not long EUR already, you should buy at 1.5590 with the same stop.