Elliott wave analysis of EUR/JPY and EUR/NZD for October 25 - 2013

 EUR/JPY

Today's Support and Resistance Levels:

R3: 134.79

R2: 134.52

R1: 134.31

Current Spot: 134.16

S1: 133.89

S2: 133.60 - Important short term support.

S3: 133.33

Technical Summary:

I continue to expect, that short term minor support at 133.89 will protect the downside for a break above 134.31 and more importantly a break above 134.52, which confirms a new test of 134.79 and a break here confirms that green wave iii is developing for a rally higher towards 135.26 and 136.08.

However, a break below 133.89 will frustrate the bullish picture, but only a break below important support at 133.60 will invalidate the bullish count and indicate, that a much more complex correction is unfolding  for a decline towards 133.30 and likely even 132.61, before higher again.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6740

R2: 1.6685

R1: 1.6618

Current Spot: 1.6591

S1: 1.6544

S2: 1.6498

S2: 1.6455

Technical Summary:

We have reached my target area between 1.6608 and 1.6618 (as the high we have seen 1.6615). I'm now looking for a break below 1.6544 to indicate, that wave i is done and wave ii is developing for a decline towards at least 1.6498 and more likely a deeper correction towards 1.6397, which a break below 1.6498 will confirm.

However, as long as minor support at 1.6544 protects the downside we could see a continuation higher, but we have seen a clear short term loss of momentum, which indicates, that we are close to a top for wave i.