Elliott Wave Analysis of EUR/NZD for January 3, 2013
Today’s Support and Resistance Levels:
S1: 1.5767 R1: 1.5843
S2: 1.5740 R2: 1.5885
S3: 1.5708 R3: 1.5934
We are now within striking distance of the 61.8% correction target at 1.5740 of red wave i. We clearly see a loss of momentum and we expect this support to protect the downside for a new rally. However, a break above 1.5908, and more importantly 1.5988, is needed to confirm the bottom for a new rally higher. A break above 1.5988 will call for a new rally higher towards 1.6218 as the first target, but we expect a move higher towards at least 1.6515 in red wave iii and likely even higher. The risk is of course a clear break below 1.5740, which would call for a continuation down to 1.5671, where we will find the next strong support level.
We are still looking to buy EUR at 1.5755 or upon a break above 159.08 (one order done cancels the other). Stop will be placed at 1.5650.
The material has been provided by Instaforex Company – instaforex.com