Elliott wave analysis of EUR/JPY and EUR/NZD for September 18 - 2013

EUR/JPY

Today's Support and Resistance Levels:

R3: 133.37

R2: 133.17

R1: 132.64

Current Spot: 132.49

S1: 132.34

S2: 132.10

S3: 131.87

Technical Summary:

I'm still looking for the break above important resistance at 132.64 to give us the "go" for the next impulsive rally higher towards 133.87 and 138.00 as the next long term target.

Ideally resistance at 132.64 will break at the next attempt, but as long as it protects the upside we must accept the possibility for a renewed downside pressure towards 132.10 and maybe even lower towards 131.87, but we should not break below 131.87. If we do break below 131.87 we should expect even more downside pressure towards strong support at 130.98. This has become a waiting game and a silent fight between the Bulls and the Bears and we need to be patient and wait to confirm who becomes the winner.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6348

R2: 1.6304

R1: 1.6274

Current Spot:1.6241

S1: 1.6230

S2: 1.6187

S3: 1.6157

Technical Summary:

With the clear break below support at 1.6247 we knew, that the next important support at 1.6117 is in play. Short term minor resistance at 1.6274 should now protect the upside for the next decline towards 1.6187 and 1.6157 before we hit the cluster of supports near 1.6117. That said, we should be aware that this wave C decline from 1.7274 is loosing momentum fast and therefore a bottom could be found at any time now for the next impulsive rally higher towards 1.7274 and higher longer term. However we need a break above 1.6348 to get the first indication, that the bottom is in place, while a break above 1.6420 confirms the bottom and the development of the next impulsive rally higher.