FX.co ★ EUR/NZD - Elliott Wave Analysis for October 9 - 2012

Today's Support and Resistance Levels:

S1: 1.5710 R1: 1.5831

S2: 1.5860 R2: 1.5880

S3: 1.5652 R3: 1.5911

Technical Overview:

Having corrected 50% of wave i, we should be looking for a bottom and a reversal to the upside. A break above 1.5831 will confirm that the bottom is in place and that wave iii higher is underway. Once wave iii gets under way, we will be looking for at least a rally towards 1.6239 and we would not be surprised to see an extension in wave iii towards 1.6556, where wave iii will be 1.618 times longer than wave i.

However, as long as resistance at 1.5831 protects the upside, we could see a full test of support at 1.5710.

Trading Recommendation:

You should be long EUR from 1.5725 with a 1.5680 stop.