EUR/NZD Elliott Wave analysis for January 10, 2013
Today’s Support and Resistance Levels:
S1: 1.5512 R1: 1.5582
S2: 1.5480 R2: 1.5626
S3: 1.5445 R3: 1.5674
Technical Overview:
We are now close to the "make it or break it" point at 1.5445. As our indicator shows, this market is becoming extremely oversold and, at the same time, has a possible Hidden Divergence, which means that we can observe a new bottom in the EWO Indicator, but not in the price-action. That said, this only becomes a valid signal if we break back above 1.5714. As long as resistance at 1.5714 protects the upside the risk, we will see further downside movement, but at no point is a break below 1.5445 allowed, as that will invalidate the count above and call for a more bearish count. Only a break above resistance at 1.5714 will ease the downside pressure and call for a rally higher towards 1.5841 and the next target on the way higher.
Trading Recommendation:
We are long EUR from 1.5655 with a stop at 1.5440.
The material has been provided by Instaforex Company – instaforex.com
