FX.co ★ EUR/NZD - Elliott Wave Analysis for October 10 - 2012

Today's Support and Resistance Levels:

S1: 1.5710 R1: 1.5790

S2: 1.5684 R2: 1.5832

S3: 1.5624 R3: 1.5880

Technical Overview:

The correction in wave ii has more or less fulfilled its target at 1.5710 with a low at 1.5721. As long as we have not broken above 1.5784, we could still see a more firm test of the ideal target at 1.5710, but we are for sure in the very last part of wave ii. A break above 1.5784 will be the first indication that the bottom is in place, while a break above 1.5832 will confirm the bottom and the next rally higher towards 1.5966 on the way to at least 1.6255 and likely even higher as wave iii of 3 is expected to extend.

What would happen if we see a break below 1.5710? We should see a continuation down to 1.5684 but then the upside pressure should take over.

Trading Recommendation:

You should be long EUR from 1.5725 with a 1.5680 stop. If you are not long already, buy EUR at 1.5725 or upon a break above 1.5784 with the same stop.