Elliott wave analysis of EUR/JPY and EUR/NZD for August 28 - 2013

 EUR/JPY

Today's Support and Resistance Levels:

R3: 131.04

R2: 130.50

R1: 130.15

Current Spot: 129.93

S1: 129.65

S2: 129.28

S3: 129.00

Technical Summary:

With the decline to 129.65, just above my second target. We likely have seen or is very close to the bottom of the final e wave of the triangle and a new powerful impulsive rally could begin any time now. The first good indication will be if support at 129.65 protects the downside for a break above 130.15 and more importantly a break above 130.50, which will call for a test of the triangle resistance-line near 132.00 and break above here will confirm that a new impulsive rally is developing towards 139.21 as the next major upside target. However, if support at 129.65 is broken it will delay the impulsive rally for a move closer to the triangle support-line near 129.00, but only a break below 127.94 will invalidate the triangle count.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.7341

R2: 1.7274

R1: 1.7218

Current Spot: 1.7182

S1: 1.7143

S2: 1.7081

S3: 1.7042

Technical Summary:

Wave ii only corrected 23.6% of wave i, this is what would be called a sub-normal correction for wave ii and indicates lots of underlying strength in this pair. With wave ii in place already I will be looking for wave iii higher towards at least 1.7859 and more likely wave iii will extend higher towards 1.8397. As wave iii is the most likely candidate to extend, this is the wave we will like to participate in for sure. With the very small wave ii we now know, that we can expect a deep and time consuming wave iv, but we will concentrate on that, when the time comes. For now, it is time for the powerful wave iii and a break above 1.7274 confirms the next part of wave iii is under way.