Elliott Wave analysis of EUR/NZD for January 16, 2013
Today’s support and resistance levels:
S1: 1.5779 R1: 1.5865
S2: 1.5742 R2: 1.5927
S3: 1.5708 R3: 1.5977
As minor resistance at 1.5926 protected the upside for a break below 1.5837, now we are looking for a more normal correction towards 1.5797, which already has been tested. That means we could have seen the bottom of blue wave ii. If blue wave ii has finished we should soon see a break above 1.5858 and, more importantly, a break above 1.5926 for a new rally above 1.5977 towards at least 1.6267 and likely even higher towards 1.6559, where blue wave iii will be 1.618 times longer than blue wave i. In the short term the risk is minor resistance at 1.5858 protects the upside for even deeper correction towards 1.5749 and maybe down to the 61.8% correction target at 1.5686 if wave c of blue wave ii extends.
We are long EUR from 1.5655 with a stop at breakeven. If you are not long EUR already you should buy a break above 1.5858 with the same stop.
The material has been provided by Instaforex Company – instaforex.com