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Wednesday, March 6, 2013

Elliott wave analysis of EUR/JPY and EUR/NZD

EUR/JPY

EUR/JPY has been trading in a very narrow range 121.12 - 122.18 the last couple of days, but we know that this type of range-trading normally is followed by high volatility. The big question is of cause which way we are going to break out of this range. I'm still looking for one last rally higher to 122.75 followed by renewed weakness down to the ideal corrective target at 117.28. However a break below 121.12 will open for the possibility of a direct decline towards the ideal target and a break below support at 120.36 will confirm this outcome.

EUR/NZD
 
We finally saw the daily close below 1.5685, which is the first close below the channel support-line since the low at 1.4966 in early August 2012. This should open for a continuation towards the expanded triangle support-line near 1.5200. The absolute minimum I expect to see is a break below 1.5390, which marked the bottom of wave c. This monster correction seems to come to an end soon, but we are not there yet. Short term we expect support at 1.5727 to protect the upside for the next decline towards support at 1.5593 and at 1.5550.

4 comments:

  1. Hi EWS are your thoughts still the same with GBPUSD above 1.5222 for 55 56 correction,looks like trying to get through bottom channel which started 4th jan 13 and do you think this is a completion of 5 w down at 1.4984.
    Your thoughts would be great
    Best Regards JT

    ReplyDelete
  2. Hi JT,

    I don't think is the end of wave 5 down, but a correction is likely due, but we need the final confirmation. Short term it would be ideal for support at 1.5067 to protect the downside for a break above 1.5222, which would confirm the correction higher towards 1.5306. The correction might extend, but be careful trading this correction as it might prove to be sub-normal.

    Kind regards
    EWS

    ReplyDelete
  3. Thanks EWS talk soon
    Best Regards JT

    ReplyDelete
  4. Hello EWS,

    May I ask how long did it take you to become so proficient with the Elliot Wave Principle, and was Frost and Prechter the only source this knowledge or are there other books that you find equally as valuable?

    Keep up the great work,

    Duane

    ReplyDelete