FX.co ★ EUR/NZD - Elliott Wave Analysis for October 30, 2012

Today's Support and Resistance Levels:

S1: 1.5715 R1: 1.5770

S2: 1.5670 R2: 1.5845

S3: 1.5635 R3: 1.5881

Technical Overview:

Did wave ii end with the test of 1.5690 yesterday? Clearly it is possible, but we need a break above 1.5787 and, more importantly, 1.5845 in order to confirm that. As long as we have not broken above 1.5787 we still could see one last swing lower towards the 1.5635 - 1.5652 area before the bottom is finally in place.
We can count a five wave decline from the level of 1.6059 and even the decline from 1.5845 is now in five waves. It means that all demands for this decline are now fulfilled. We would like to see one more swing lower towards the ideal target area between 1.5635 - 1.5652, but we should be alert to what the market is telling us.

Trading Recommendation:

It is not hard to get into a position, but it is hard to do it at the right point, to make the risk as low as possible and the rewards opportunity as big as possible. We will buy EUR at 1.5670 or at 1.5790 (one order done cancels the other) with a stop at 1.5575.