Elliott wave analysis of EUR/JPY and EUR/NZD for October 11 - 2013

 EUR/JPY

Today's Support and Resistance Levels:

R3: 134.60

R2: 134.03

R1: 133.69 Ideal red wave iii of i target (not shown on the chart)

Current Spot: 133.33

S1: 133.11

S2: 132.75

S3: 132.46

Technical Summary:

As I said yesterday, there was no time left and some kind of resolution was expected. We certainly got that. The resolution was towards the upside as per my preferred scenario. With wave ii in place we should now expect a rally towards at least 136.97, where wave iii will be equal in length to wave i, but it is more likely, that wave iii will become extended and move even higher towards 140.46, where wave iii will be 1.618 times wave i.

Short term we are close to a strong short term resistance at 133.69, which is expected to hold for a correction towards the 132.46 - 132.75 support-zone from where the next rally higher towards 134.06 as wave i of iii.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6469

R2: 1.6406

R1: 1.6356

Current Spot: 1.6298

S1: 1.6258

S2: 1.6219

S3: 1.6173

Technical Summary:

We saw a test of strong short term resistance at 1.6405 (the high was at 1.6406) yesterday and is currently headed for the important neckline support near 1.6233. A break below the neckline support at 1.6233 and confirmed by a break below 1.6219 will accelerate the downside pressure for a decline towards 1.6071 and 1.5872 (the 61.8% retracement of wave 1 or A). However until we have a clear break below 1.6233 we are locked in this messy and hard to read consolidation, which has become the area of the tuck of war between the bulls and the bears. 

Only a break above resistance at 1.6406 will ease the downside pressure for a rally towards the opposite neckline resistance near 1.6500 and if broken will call for a important bottom being in place and a new major rally back towards 1.7274 and higher.