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

EUR/JPY

Today's Support and Resistance Levels:

R3: 134.84

R2: 134.15

R1: 133.69

Current Spot: 132.85

S1: 132.60

S2: 132.44

S3: 132.20

Technical Summary:

We are hoovering just above strong support in the 132.44 - 132.60 zone, which I expect will protect the downside for a break above 133.69 confirming the final rally higher in wave c of v to end the ending diagonal. The ideal target for wave c of v is at 137.69, but we could see a rally a little higher, but under no circumstances can a break above 138.39 be allowed, as that would make wave iii of v the shortest wave and that is no allowed under the Elliott Wave Principle. Once wave v of the ending diagonal is in place we should see a correction towards at least 124.85. 

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6471

R2: 1.6423

R1: 1.6361

Current Spot: 1.6295

S1: 1.6271

S2: 1.6212

S3: 1.618 

Technical Summary:

Wave ii has broken below strong support at 1.6319, which has opened for a deeper decline towards 1.6271 and maybe even 1.6212. We have to remember, that second waves are allowed to correct 100% of the first wave, but never ever can break below the start of the first wave, which we think is at 1.6081. Once wave ii is in place we should expect a strong rally as wave iii unfolds. Normally wave iii will be the longest and strongest of the impulsive waves. To confirm that wave iii is developing we need a break above 1.6422 and more importantly a break above 1.6471 for a new rally towards 1.6726 and higher to 1.7424.