Elliott wave analysis of EUR/JPY and EUR/NZD for September 16 - 2013

 EUR/JPY

Today's Support and Resistance Levels:

R3: 133.37

R2: 133.17

R1: 132.64

Current Spot: 132.13

S1: 131.63

S2: 131.17

S1: 130.98 

Technical Summary:

I'm still looking for a bottom for this red wave ii and the next impulsive rally higher towards 133.37 and higher towards 138.00. To confirm the bottom for red wave ii we need a break above 132.40 and more importantly a break above resistance at 132.64, that will confirm a new impulsive rally higher towards 133.37 on the way towards 138.00. However, as long as resistance at 132.64 protects the upside, we must stay flexible and allow for a deeper correction we we break below 131.63. A break below 131.63 will call for a move lower towards 131.37 and maybe even closer to 130.98, but that is less likely.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6485

R2: 1.6421

R1: 1.6364

Current Spot: 1.6297

S1: 1.6271

S2: 1.6227

S1: 1.6181 

Technical Summary:

We have now seen two attempts to break below 1.6247 and both of them has been rejected. However, we need a break above resistance at 1.6364 and more importantly we need a break above resistance at 1.6421 to confirm that the C-wave down from 1.7274 has finally come to an end and that the next impulsive rally higher has begun. That said, as long as resistance at 1.6421 protects the upside we must accept the possibility of a deeper correction towards 1.6117, but for that outcome we need a clear and sustained break below 1.6247.