Elliott wave analysis of EUR/JPY and EUR/NZD for November 27 - 2013

EUR/JPY

Today's Support and Resistance Levels:

R3: 138.23

R2: 138.12

R1: 138.03

Current Spot: 137.92

S1: 137.60

S2: 137.10

S3: 136.60

Technical Summary:

As expected important support at 137.02 protected the downside for a new high at 138.03. The wave structure of this last rally from 137.10 does not look complete yet, therefore I expect support at 137.60 to protect the downside for one last marginal new high just above 138.03 likely in the 138.12 - 138.23 area before the final top of wave v of 5 is in place and a major correction towards at least 124.94 will take place. A break above resistance at 138.30 will question this count for the ending diagonal, as a break above 138.30 will make wave iii the shortest wave and that is not allowed under the Elliott Wave Principle.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6684

R2: 1.6636

R1: 1.6592

Current Spot: 1.6586

S1: 1.6521

S2: 1.6487

S3: 1.6462

Technical Summary:

The wave iv correction fell short of its ideal corrective target near 1.6344 and found its bottom already at 1.6380. Wave v higher towards 1.6739 is now developing. Short term I'm looking for a minor set-back towards 1.6521 before a clear break above 1.6592 confirms the next rally higher towards 1.6636 and the expected wave v target at 1.6739. Only a break below 1.6380 will invalidate this count and call for a decline closer to 1.6344, but it will take a break below 1.6259 to invalidate the above count altogether and bring the alternative count in to play.