Elliott wave analysis of EUR/JPY and EUR/NZD for November 11 - 2013

 EUR/JPY

Today's Support and Resistance Levels:

R3: 132.99

R2: 132.76

R1: 132.57

Current Spot: 132.27

S1: 131.89

S2: 131.58

S3: 131.20 

Technical Summary:

Wave 1 or A ended with the test of 135.51 and we have now started a correction of wave 1 or A in wave 2 or B, As a minimum I'm looking for a correction towards 124.92, where wave 2 or B would have corrected 23.6% of wave 1 or B. However, it is more likely, that the ongoing correction corrects 38.2% of wave 1 or A, which would call for a decline towards 119.70. As the decline from 135.51 has been in five wave we will be looking for a zig-zag correction lower, but corrections can undertake many different patterns, which makes them hard to read from time to time.

Short term I expect resistance near 132.76 for a break below 131.89 and more importantly a break below support at 131.50 which calls for an acceleration lower towards at least 128.42 and likely even lower to 125.76 as red wave iii extends.

EUR/NZD

Today's Support and Resistance levels:

R3: 1.6294

R2: 1.6223

R1: 1.6190

Current Spot: 1.6137

S1: 1.6036

S2: 1.5917

S3: 1.5821

Technical Summary:

We are currently in wave c of a major correction which began from 1.7274, the ideal target for this correction is at 1.5525, where wave c will be equal in length to wave a. Looking at the structure of wave c from 1.6726 it looks as we already has four sub-waves in place and that would mean, that red wave v will be an extended wave. A break below 1.6036 will indicate, that red wave v is developing for a decline towards at least 1.5724 and likely even lower towards 1.5525. However as long as support at 1.6036 protects the downside we could see a move closer to 1.6190 before lower.