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Wednesday, January 2, 2013

Elliott wave analysis of EUR/JPY and EUR/NZD

 EUR/JPY

The wave iv correction became a new sub-normal correction, as the correction only fell to 113.13 before taking off again in wave v of 3. I expect this wave v of 3 to reach 117.31, where wave 3 will be 1.618 times longer than wave 1, this is a very common extension target and it's the smallest extension we expect for wave 3. Looking at the short term structure for wave v of 3 we are currently in wave iv of iii of 5 and should soon see wave v of iii of 5 higher towards 116.49 before we expect minor correction in wave iv before the last wave higher towards 117.31.
 
EUR/NZD

The correction from the 1.6218 high has become deeper than first expected, as we are looking at series of zig-zag corrections. As can be seen on the chart we have already corrected 50% of red wave i and it seems as we need a correction towards the 61.% retracement target at 1.5740 before we can expect the next rally higher in red wave iii of iii. That said, a break above resistance at 1.5988 will confirm that the correction from 1.6218 is over and red wave iii is under way towards 1.6218 as its first target, but longer term I will be looking for rally to at least 1.6515 and probably higher as red wave iii develops.

 

7 comments:

  1. I miss this train!!!I was waitting for a more correction in order to enter long again!!!now i think its a little late to go long

    ReplyDelete
  2. Hi Zink

    Yes the best part for the rally from 113.13 is unfortunately lost, but I still think a buy could be made close to 115.27 with a 114.75 stop and take profit near 117.31.

    Kind regards
    EWS

    ReplyDelete
  3. Hello EWS:

    Happy New Year..

    I was reading your count about EURJY, and I've a question about the last wave -v of 3- I think waves V always have five subwaves, and maybe wave i is 114.28, wave ii is 113.247 and wave iii is 100% of this movement...am I wrong? Kind Regards

    ReplyDelete
  4. Hi Manuel,

    I think that we have a mix up on the wave degree. When I referred to wave 3 being 1.618 times wave 1 I meant wave 1 from 94.10 to 104.59 and wave 3 is the move up from 100.88, which at 117.85 wil be 1.618 times longer than wave 1.

    Hope that clears any confusion

    Kind reagrds
    EWS

    ReplyDelete
  5. Hi Ews,

    Happy New Year!!
    What do you think about crude oil now? Is it a correction of the move from 100,37-~84? Or what do you see now?
    Thanks,
    CJ

    ReplyDelete
  6. Hi CJ

    I will have a look at Crude Oil later today and writte a comment on the blog.

    Just a short note here. The latest price-action has clearly left the decline from 100.43 down to 87.04 as a three wave decline and thereby corrective in nature and this calls for a new rally back towards the resistance line near 100, but more later.

    Kind regards
    EWS

    ReplyDelete
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