FX.co ★ EUR/NZD - Elliott Wave Analysis for October 31, 2012

Today's Support and Resistance Levels:

S1: 1.5755 R1: 1.5820

S2: 1.5704 R2: 1.5881

S3: 1.5652 R3: 1.5950

Technical Overview:

With the break above resistance at 1.5787 yesterday we had our first good indication that the big expanded flat correction from 1.5967 had ended and a new powerful rally higher have begun. Now we are looking for support at 1.5755 to protect the downside for a break above 1.5793 and, more importantly, 1.5820 to confirm the next rally higher towards 1.5985. However, a break below 1.5955 will cause us to become more cautious, but it will take a break below 1.5704 to confirm that the c-wave decline from 1.6059 is still ongoing and a new low closer to 1.5652 should be seen.

Trading Recommendation:

You should be long EUR from 1.5790. Move your stop up to 1.5700. If you are not long EUR already buy here or upon a break above 1.5820 with the same stop.