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18.07.2012 10:02 AM
EUR/NZD - Elliott Wave Analysis for July 18, 2012

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Today's Support and Resistance Levels:

 

Support                         Resistance

1: 1.5340                      1: 1.5505

2: 1.5303                      2: 1.5602

3: 1.5245                      3: 1.5636

 

Technical Overview: 

Odds is swinging more and more in favor of an important long-term bottom being in place with the test of 1.5303. As we have broken above minor resistance at 1.5410 upside pressure is becoming more pronounced. That showed we still need a break above resistance at 1.5505 to confirm that the bottom is in place at 1.5303 and call for a rally towards at least the 1.5808 - 1.5885 area. However we do expect the coming rally to be much bigger than that.

The short-term risk is a break below 1.5340 that will confirm a new test of the 1.5303 low and possibly even a new low near 1.5245.

 

Trade Recommendation:

We have just bought EUR against NZD at 1.5425 and will place stop at 1.5300. Take profit at 1.5800

Summary
Urgency
Analytic
Torben Melsted
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