Elliott wave analysis of EUR/JPY and EUR/NZD for September 10 - 2013

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 EUR/JPY

Today's Support and Resistance Levels:

R3: 134.49

R2: 134.14

R1: 133.81

Current Spot: 133.02

S1: 132.71

S2: 132.36

S3: 131.91 

Technical Summary:

With the break above important resistance at 132.42 we had confirmation we needed to confirm, that the expected thrust out of the B-triangle is developing. The first target is 133.81 with 134.14 and 134.49 as the next targets. Short term support at 132.71 will ideally protect the downside for the rally higher towards 134.49, but only a break below 131.84 will question this new uptrend. Longer term I'm looking for much higher levels in this pair and expect a rally higher towards 170.00.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6569

R2: 1.6509

R1: 1.6470

Current Spot: 1.6431

S1: 1.6408

S2: 1.6325

S3: 1.6225

Technical Summary:

Since yesterday we have been moving sideways to down, but as important support at 1.6325 protects the downside I am still looking for a break above resistance at 1.6565, which will be the first good indication, that this wave ii correction is finally over and a powerful wave iii is developing for a new rally to 1.7274 and higher towards 1.7780. That said, the risk is of cause, that resistance at 1.6565 protects the upside for a break below the invalidation point at 1.6325, which will call the alternate count. In case of a break below 1.6325 the rally of this low to 1.7274 was only a b-wave of an expanded flat correction (see Jeff M's chart from Sunday here: http://theelliottwavesufer.blogspot.dk/2013/09/elliott-wave-analysis-of-eurnzd.html ). The ideal target for the c wave of this expanded flat correction is at 1.6117, where wave ii will have corrected 50% of wave i and wave c of the expanded flat correction will be 1.382 times longer than wave a.