Elliott wave analysis of EUR/JPY and EUR/NZD for December 5 - 2013

EUR/JPY

Today's Support and Resistance Levels:

R3: 140.02

R2: 139.61

R1: 139.19

Current Spot: 139.14

S1: 138.80

S2: 138.43

S3: 138.16

Technical Summary:

The decline from 140.02 do have some impulsiveness to it, but it is not enough to confirm, that we have an important top in place at 140.02 and that, a major correction in wave II has taken over, for a decline to at least 124.92 longer term.

To confirm the top we need resistance at 139.61 to protect the upside for a clean impulsive break below 138.43 towards at least 137.85 for the short term. If resistance at 139.61 is broken the decline from 140.02 has clearly only been in three waves, which means it has been corrective and that, a new rally towards 140.02 and slightly higher should be seen.

EUR/NZD

Today's Support and Resistance Levels:

R3: 1.6681

R2: 1.6627

R1: 1.6592

Current Spot: 1.6578

S1: 1.6535

S2: 1.6517

S3: 1.6443

Technical Summary:

We have seen a clear impulsive five wave rally from the 1.6443 low to 1.6635 (a little below the ideal target of 1.6658). The correction from 1.6635 could be over with the test of 1.6527, but to confirm that, we need for minor support at 1.6535 to protect the downside for a break above 1.6591 and more importantly a break above 1.6635. As this is a minor green wave ii, which is currently developing it can continue all the down to 1.6443, but that scenario is less likely (second waves are allowed to correct 100% of the first wave).