Elliott Wave Analysis of EUR/JPY for October 16, 2013
October 16, 2013 6:15 am
Today’s Support and Resistance levels:
R3: 133.83
R2: 133.63
R1: 133.33
Current Spot: 133.16
S1: 132.96
S2: 132.61
S1: 132.15 – 61.8% retracement of red wave i most likely target for red wave ii.
Technical summary:
With the early break below important support at 133.35, we knew that we had already ended red wave i at 133.83 and red wave ii was developing. In the short term, we expect resistance at the 133.32 – 133.37 zone to protect the upside for a break below 132.96, which confirms acceleration towards the ideal target for red wave ii at 132.15, before red wave iii takes over for a new impulsive rally higher. Only a direct break above 133.63 invalidates the expected downside and indicates, that wave iii is already developing for a rally higher towards at least 135.36 and more likely even higher to 137.04 if red wave iii extends.
Trading recommendation:
The stop at 133.33 was triggered for a small loss. Look to buy EUR at 132.25 or upon a break above 133.63 (one order cancels the other) with at stop at 131.15.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 133.83
R2: 133.63
R1: 133.33
Current Spot: 133.16
S1: 132.96
S2: 132.61
S1: 132.15 – 61.8% retracement of red wave i most likely target for red wave ii.
Technical summary:
With the early break below important support at 133.35, we knew that we had already ended red wave i at 133.83 and red wave ii was developing. In the short term, we expect resistance at the 133.32 – 133.37 zone to protect the upside for a break below 132.96, which confirms acceleration towards the ideal target for red wave ii at 132.15, before red wave iii takes over for a new impulsive rally higher. Only a direct break above 133.63 invalidates the expected downside and indicates, that wave iii is already developing for a rally higher towards at least 135.36 and more likely even higher to 137.04 if red wave iii extends.
Trading recommendation:
The stop at 133.33 was triggered for a small loss. Look to buy EUR at 132.25 or upon a break above 133.63 (one order cancels the other) with at stop at 131.15.
The material has been provided by InstaForex Company – www.instaforex.com
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