EURNZD - Elliott Wave Analysis for September 4, 2012

EURNZD - Elliott Wave Analysis for September 4, 2012

Today's Support and Resistance Levels: 

S1: 1.5755 R1: 1.5830

S2: 1.5687 R2: 1.5867

S3: 1.5629 R3: 1.5912 

Technical Overview: 

Maroon wave iv was a very shallow correction. Even shallower than we expected, but this is typical behavior of wave three. As maroon wave iv was as shallow as it was, the target for maroon wave v was a little bit higher than the target we sat for. However, we think there is a good possibility that we have seen the top of maroon wave v and green wave iii at 1.5830. That means we can expect a new shallow green wave iv correction. The first target will be at 1.5710 with the second target set at 1.5637, but again corrections in an extended wave three tend to be sub normal and there is a risk that we will not even reach the first corrective target at 1.5710 before green wave v takes over towards at least 1.5870 or even 1.5950 depending on where green wave iv ends. 

Trading Recommendation:

Buy EUR against NZD on a correction back towards 1.5710 with a 1.5580 stop.

Source: InstaForex