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
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.
We are long EUR from 1.5655 with a stop at 1.5440.
The material has been provided by Instaforex Company – instaforex.com