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19.06.2013 10:15 AM
Elliott Wave analysis of EUR/NZD for June 19, 2013

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Today's Support and Resistance levels:

R3: 1.6913

R2: 1.6870

R1: 1.6825

Current spot: 1.6768

S1: 1.6742

S2: 1.6710

S3: 1.6669

Technical overview:

We are currently in black wave v higher from the 1.6388 low. Since the low at 1.6388, we have seen an impulsive rally to 1.6825. It marks red wave i and we are currently in red wave ii, which we expect needs one last decline to just below 1.6669 before the next rally higher towards at least 1.7109 and more likely higher towards 1.7372 in an extension in red wave iii. As long as short-term resistance at 1.6825 protects the upside we are expecting the decline towards 1.6669, but a break above 1.6825 indicates that red wave iii is already under way higher.

Trading recommendation:

We are long EUR from 1.6450 with a break-even stop at 1.6450. If you are not long EUR already, then buy close to 1.6669 or upon a break above 1.6825 (one order cancels the other) with a stop at 1.6450 too.

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