Elliott wave analysis of EUR/JPY and EUR/NZD for October 4 - 2013

 EUR/JPY

Today's Support and Resistance Levels:

R3: 133.49

R2: 133.21

R1: 132.69

Current Spot: 132.32

S1: 132.13

S2: 131.89

S3: 131.42 

Technical Summary:

We are more or less trading sideways currently. I'm still looking for evidence, in form of a break above 133.49 and more importantly a break above 134.00 to confirm, that wave iii higher is developing. Until the break above 133.49 is seen we have to respect the possibility of more sideways trading. However, we also have to be aware, that a break below 131.42 will be very frustrating to the overall bullish picture and could delay the upside for a considerable downside pressure, as that would indicate, that the correction from the May 22 high at 133.81 is not over yet.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6565

R2: 1.6515

R1: 1.6464

Current Spot: 1.6423

S1: 1.6380

S2: 1.6362

S3: 1.6323 

Technical Summary:

Short term I expect minor support at 1.6380 will protect the downside for a break above 1.6464 and more importantly a break above 1.6515, which will confirm the next powerful rally higher towards 1.7000. However, until the break above 1.6464 is seen we could see more sideways trading activity between 1.6406 and 1.6441, but once we clear 1.6441 it will be the first indication, that we are ready to challenge the upside again. 

Short term only a break below 1.6380 will delay the upside pressure for a move closer to 1.6338 before a new rally can be expected.