Elliott wave analysis of EUR/JPY and EUR/NZD for October 28 - 2013

EUR/JPY

Today's Support and Resistance Levels:

R3: 135.76

R2: 135.32

R1: 135.76

Current Spot: 134.72

S1: 134.52

S2: 133.88

S3: 133.60

Technical Summary:

We have seen a bottom at 133.88 (my target was at 133.89). The following rally is not yet the most convincing I have seen, but I will give it the benefit of my doubt as long as minor support at 134.52 and more importantly support at 133.88 protects the downside. Short term I'm looking for a break above 134.96 which indicates a continuation higher towards 135.32 and 135.76 as the next targets. A break below 134.52 will be frustrating, but only a break below 133.88 and more importantly a break below 133.60 will invalidate my bullish scenario and indicate, that a much more complex correction is unfolding.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6740

R2: 1.6684

R1: 1.6654

Current Spot: 1.6623

S1: 1.6559

S2: 1.6498

S3: 1.6444

Technical Summary:

There was no time for a correction Friday as we continued directly higher to the next resistance at 1.6685 (we have seen 1.6684 as the high for now). However, I still think that we should soon see wave ii unfold, but to confirm, that wave ii is unfolding we need a break below 1.6559, that would call for a continuation lower towards 1.6498 and 1.6444 before the ideal wave ii target near 1.6325. That said, we have to be aware, that as long as support at 1.6559 protects the downside we could see a continuation directly higher towards 1.6740 if wave i extends even more.