Today's Support and Resistance levels:
R3: 1.5970
R2: 1.5924
R1: 1.5894
Current spot: 1.5871
S1: 1.5857
S2: 1.5814
S3: 1.5770
Technical overview:
There was no time for red wave ii to develop into a deeper correction and the break above the top of red wave i indicated, that red wave iii was developing. We should soon see a clear break above the base-channel resistance line, which will confirm that red wave iii is developing. As red wave i wave a leading diagonal, we should expect red wave iii to extend and the first extension target will come in at 1.6481, where red wave iii will be 1.618 times red wave i. In the short term we could see a decline to 1.5770, but from there or upon a break above 1.5924 we should see the next very powerful rally higher towards 1.5970 and 1.6023.
Trading recommendation:
Due to the shallow correction in red wave ii we missed our buying opportunity, but we will place a new EUR buy order at 1.5790 or buy upon a break above 1.5924 (one order cancels the other). We will place our stop at 1.5615.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Elliott Wave analysis of EUR/NZD for May 17, 2013 . Thanks for your support on Elliott Wave analysis of EUR/NZD for May 17, 2013
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