Elliott wave analysis of EUR/JPY and EUR/NZD for December 9 - 2013

EUR/JPY

 

Today's Support and Resistance Levels:

R3: 143.60

R2: 142.38

R1: 141.74

Current Spot: 141.07

S1: 140.82

S2: 140.37

S3: 140.00

Technical Summary:

With the rally above 139.60 we knew, that one more new high above 140.02 was needed. However, the rally that we have seen has been much stronger than expected. Looking at the rally from the 131.20 low we now have a clear five wave rally and is close to a top, but likely not quite there yet. 

Short term I'm looking for support at 140.82, which would likely be strong enough to protect the downside for one more new high closer to 142.38 and maybe even closer to 143.60 before the top is finally in place. Only a break below 139.56 will indicate that the top is already in place and call for a much deeper correction towards 124.92.



EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6688

R2: 1.6601

R1: 1.6556

Current Spot: 1.6521

S1: 1.6470

S2: 1.6454

S3: 1.6443

Technical Summary:

I did not expect an expanding flat correction to develop, but as long as important support at 1.6443 stays untouched, I will be looking for a break above 1.6556 and more importantly a break above 1.6750 confirming a new powerful rally higher. However, a break below 1.6443 will be a game changer and call for a new decline towards 1.5900 and likely even below.

Short term I would like to see support in the 1.6500 - 1.6510 zone protect the downside for a rally to above 1.6556 indicating, that the expanding flat correction ended at 1.6470.