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

EUR/JPY

Today's Support and Resistance Levels:

R3: 135.05

R2: 134.55

R1: 134.10

Current Spot: 133.86

S1: 133.84

S2: 133.57

S1: 133.30

Technical Summary:

We have seen the expected move higher, but without acceleration, which does worry... However, as long as minor support at 133.84 and more importantly as long as support at 133.57 protects the downside I will be looking for a continuation higher towards 134.55 and 135.05 as the next targets on the way higher towards the ideal red wave iii target near 137.04.

If however, we do break below 133.57 I will have to consider the rally from 132.61 as part of an more complex correction, but for now I will keep my focus towards the upside as long as support at 133.84 holds firm.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6263

R2: 1.6233

R1: 1.6183

Current Spot: 1.6149

S1: 1.6115

S2: 1.6068

S3: 1.6017

Technical Summary:

The break above minor resistance has extended the consolidation from 1.6017 higher to 1.6173 as expected. As long as minor support at 1.6131 and more important as support at 1.6115 holds firm we could see a move closer to 1.6211, but at no point should we see a rally beyond 1.6233 as that would indicate, that an important bottom is already in place at 1.6017. However, that scenario does not fit my count, that the rally from 1.6017 only is blue wave iv and that blue wave v lower soon should take over for a decline towards at least 1.5977 and more likely closer to 1.5872 before a firm low is in place and a new impulsive rally is ready to take over.