Elliott wave analysis of EUR/JPY and EUR/NZD for October 23 - 2013

EUR/JPY

Today's Support and Resistance Levels:

R3: 135.76

R2: 135.32

R1: 135.05

Current Spot: 134.78

S1: 134.55

S2: 134.10

S1: 133.60

Technical Summary:

We finally saw some acceleration higher as wave iii is getting under way. That said, we expect even more acceleration higher and once we clear 136.00 this wave iii should really take of. Short term we expect support at 134.55 and more importantly 134.10 to protect the downside for the next rally towards 135.76 and higher. A break below support at 134.10 will be frustrating, but only a break below 133.60 will indicate, that the rally of the 132.61 low only was part of a complex correction and a new decline below 132.61 should be seen.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6406

R2: 1.6356

R1: 1.6300

Current Spot: 1.6297

S1: 1.6265

S2: 1.6230

S3: 1.6196

Technical Summary:

We have seen an unexpected rally above important resistance at 1.6233, which tells me, that blue wave v became an fifth wave failure (no new low was seen), that also means, that we have likely seen the low of the expanded flat correction, which has been developing since early August. Short term we should meet resistance at 1.6300, but it will likely not hold for long and once broken we should see a continuation higher towards 1.6381 and 1.6406. Longer term I'm looking for a break above 1.6518 to confirm, that wave C of the expanded flat correction is indeed over and that a new impulsive rally is developing. If we do not break above 1.6518 we could be developing a large ending diagonal, which could take many weeks to finish and that will keep the 1.5872 target alive.