FX.co ★ EUR/NZD - Elliott Wave Analysis for October 18, 2012

Today's Support and Resistance Levels:

S1: 1.5923 R1: 1.5981

S2: 1.5891 R2: 1.6061

S3: 1.5831 R3: 1.6127

Technical Overview:

The correction from the 1.6059 high has become a little bigger than we originally thought it would be. However, it does not alter our preferred scenario. We are still looking for a much bigger rally here. Once the correction from the 1.6059 high finds its end we should see the next powerful rally higher. As concerns the end of the correction from 1.6059, we suppose it is going to end in the range 1.5891to 1.5922. A break above minor resistance at 1.5987 will be the first indicator, that the correction from 1.6059 is over and a new impulsive rally towards 1.6127 and 1.6215 has begun. At this point only a break below 1.5803 will invalidate the expected impulsive rally and indicate that we are still in a wave ii correction.

Trading Recommendation:

You should be long EUR from 1.5725 with 1.5860 stop. If you are not long EUR already buy at 1.5925 with the same stop.