Elliott wave analysis of EUR/JPY for October 2 – 2014
October 2, 2014 8:20 am
Today’s support and resistance levels:
R3: 137.89
R2: 137.72
R1: 137.47
Current spot: 137.41
S1: 137.38
S2: 137.25
S3: 136.96
Technical summary:
The correction in red wave ii just keeps moving lower. We are currently seeing a test of the magic 70.7% corrective target at 137.38, but as long as minor resistance at 137.72 protects the upside, we need to allow for a continuation lower to the 78.6% corrective target at 136.96 before red wave ii is over and red wave iii will be ready to take over. That said, we will need a break above 138.80 to confirm that red wave iii is indeed unfolding. We also need to remember, that second waves are allowed to correct 100% of the first wave, but never ever can break below the origin of the first wave.
Trading recommedation:
We are still neutral and will move our EUR-buy order lower to 137.75.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s support and resistance levels:
R3: 137.89
R2: 137.72
R1: 137.47
Current spot: 137.41
S1: 137.38
S2: 137.25
S3: 136.96
Technical summary:
The correction in red wave ii just keeps moving lower. We are currently seeing a test of the magic 70.7% corrective target at 137.38, but as long as minor resistance at 137.72 protects the upside, we need to allow for a continuation lower to the 78.6% corrective target at 136.96 before red wave ii is over and red wave iii will be ready to take over. That said, we will need a break above 138.80 to confirm that red wave iii is indeed unfolding. We also need to remember, that second waves are allowed to correct 100% of the first wave, but never ever can break below the origin of the first wave.
Trading recommedation:
We are still neutral and will move our EUR-buy order lower to 137.75.
The material has been provided by InstaForex Company – www.instaforex.com
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