FX.co ★ EUR/NZD - Elliott Wave Analysis for November 2, 2012

Today's Support and Resistance Levels:

S1: 1.5611 R1: 1.5687

S2: 1.5572 R2: 1.5762

S3: 1.5506 R3: 1.5836

Technical Overview:

The fact that we were not able to break above resistance at 1.5836 and the following break below 1.5705 changed the overall count slightly. The break below 1.5705 has prolonged wave c of ii, but we should be very close to the end of wave c. We should still see one more new low closer to 1.5572 and we could even see this new low all the way down at 155.06, but that is less likely. To confirm that we have seen a bottom for wave ii we need a break above 1.5749 and more importantly the top of the previous red wave iv at 1.5836, but once it happens we should see wave iii power ahead.

Trading Recommendation:

We stopped at 1.5700, but we will buy EUR again at 1.5580 or a break above 1.5749 (one order done cancels the other) with a stop at 1.5450.