Elliott wave analysis of EUR/JPY and EUR/NZD for October 31 - 2013

EUR/JPY

Today's Support and Resistance Levels:

R3: 136.27

R2: 135.76

R1: 135.27

Current Spot: 134.89

S1: 134.76

S2: 134.26

S3: 133.88

Technical Summary:

Having reviewed the price action since the mid-June low at 124.96, I have decided to shift my preferred count to the above. Instead of a triangle building we have seen a slow overlapping move higher and I think that an ending diagonal describes this move best. As can be seen we are currently in the last wave higher towards a maximum of 138.39 (wave iii can not be the shortest of the impulsive waves). Ending diagonal consist of three wave zig-zag's and of wave v we have only seen the first leg (wave a) of this zig-zag and is currently working on the b-wave, which is likely to be a flat correction. If this is correct, we will likely see a break below 134.76 indicating a decline to just below 133.60 before the final rally higher to finish wave iv of 5.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6727

R2: 1.6676

R1: 1.6644

Current Spot: 1.6612

S1: 1.6601

S2: 1.6559

S3: 1.6498 

Technical Summary:

After a very complex b-wave to 1.6726 we have begun a impulsive decline in wave c. This c wave of wave ii should at least decline to 1.6469 and could make it lower towards 1.6390 and maybe even 1.6312, but only time will show. For nowI'm looking for a break below 1.6585 and more importantly a break below 1.6559 to confirm, that the decline towards at least 1.6469 is developing. Until the break below 1.6585 has been seen, we could see a minor rally back towards 1.6651, but I would not bet on that outcome. For now I'm focused towards the downside as wave ii develops and are looking for acceleration lower, when support at 1.6585 breaks.