Elliott wave analysis of EUR/JPY and EUR/NZD for October 14 - 2013

 EUR/JPY

Today's Support and Resistance Levels:

R3: 134.50

R2: 133.98

R1: 133.54

Current Spot: 133.31

S1: 133.04

S2: 132.70

S3: 132.42

Technical Summary:

Red wave iii ended just 9 small pips below the ideal wave iii target at 133.69 and I'm currently looking for a decline into the 132.42 - 432.70 support-zone for red wave iv. Once this support-zone has been tested we should see red wave v higher towards 133.98 as the ideal target. This rally should just be the first wave of black wave iii, which at least should make it to 137.02, but it will be more likely, that black wave iii becomes extended and continues higher towards 140.51, where black wave iii will be 1.618 times black wave i. 

At no point should the ongoing red wave iv trade below 131.57, as that would leave us with an overlap between red wave i and red wave iv, which is not allowed for an impulsive rally. 

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6406

R2: 1.6356

R1: 1.6314

Current Spot: 1.6278

S1: 1.6272

S2: 1.6219

S3: 1.6173

Technical Summary:

Important support at 162.19 has been tested and held firm, which leaves us lock inside this messy sideways consolidation. Have a new impulsive begun with the rally higher from the 1.6071 low or was the rally from 1.6071 to 1.6515 red wave iv and red wave v lower towards 1.6071 and 1.5872 is ahead of us? At this point I think the two possibilities has an almost fifty-fifty percent chance, with a slight overweight to the new impulsive rally having begun, but the deciding factor will be either a break above 1.6406 or a break below 1.6219. So for now it is just a waiting game...