Elliott Wave analysis of EUR/JPY for July 11, 2013
July 11, 2013 7:43 am
Today’s Support and Resistance levels:
R3: 130.56 (very important resistance)
R2: 130.13
R1: 129.70
Current spot: 129.32
S1: 128.92
S2: 128.49
S3: 128.00
Technical overview:
Even though the rally from 128.00 has been much bigger than expected, we are still looking for a break below 128.00 soon and an acceleration towards the downside. We counted the decline from 130.56 to 128.00 as red wave i of iii of c and the rally we have seen from 128.00 to 130.43 as red wave ii and we are therefore looking for red wave iii down. In short-term we would like to see minor resistance at 129.91 protecting the upside for a break below 128.98, which would confirm a new decline towards 128.00 and lower towards 126.57. However, it is vital that we don’t see a break above important resistance at 130.56. If this resistance breaks, it will invalidate not only our bearish count, but it will also swing the entire picture towards a more bullish count and a rally back towards the high at 133.81 in a very complex correction.
Trading recommendation:
We are short EUR from 130.50 and will place a stop + reverse of our short position at 130.60. If you are not short EUR yet, then sell near 129.91 or upon a break below 128.98 with the same stop+reverse at 130.60.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 130.56 (very important resistance)
R2: 130.13
R1: 129.70
Current spot: 129.32
S1: 128.92
S2: 128.49
S3: 128.00
Technical overview:
Even though the rally from 128.00 has been much bigger than expected, we are still looking for a break below 128.00 soon and an acceleration towards the downside. We counted the decline from 130.56 to 128.00 as red wave i of iii of c and the rally we have seen from 128.00 to 130.43 as red wave ii and we are therefore looking for red wave iii down. In short-term we would like to see minor resistance at 129.91 protecting the upside for a break below 128.98, which would confirm a new decline towards 128.00 and lower towards 126.57. However, it is vital that we don’t see a break above important resistance at 130.56. If this resistance breaks, it will invalidate not only our bearish count, but it will also swing the entire picture towards a more bullish count and a rally back towards the high at 133.81 in a very complex correction.
Trading recommendation:
We are short EUR from 130.50 and will place a stop + reverse of our short position at 130.60. If you are not short EUR yet, then sell near 129.91 or upon a break below 128.98 with the same stop+reverse at 130.60.
The material has been provided by InstaForex Company – www.instaforex.com
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