Elliott Wave Analysis of EUR/JPY for October 8, 2013
October 8, 2013 6:15 am
Today’s Support and Resistance levels:
R3: 132.69 – Important resistance.
R2: 132.09
R1: 131.79
Current Spot: 131.46
S1: 131.11
S2: 130.81 – Support line from 124.96. Break below here shifts the the alternate count.
S3: 130.51
Technical summary:
Support at 131.46 did not hold and that forces us to consider an alternate count (see the chart below). As long as the support line from 124.96, which currently is at 130.81, protects the downside, the above chart stays our preferred count, but the two scenarios has an almost fifty-fifty chance at this point. What border us with the above count is the fact, that we have seen a break back into the triangle and that we are almost at the apex (where the two line meets) of the triangle. For this count to remain on top, we need a powerful rally above 132.69 to take off now. If we do not see this rally and continues down towards 130.81 and break below here, the alternate count below becomes the preferred count. This count tells us that we have only just begun wave C of an expanded flat correction, which calls for wave C down to 120.22.
Trading recommendation:
The stop at 131.40 was hit for a loss. Stay neutral for now. But be ready to sell a break below 130.81 or buy upon a break above 132.69.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 132.69 – Important resistance.
R2: 132.09
R1: 131.79
Current Spot: 131.46
S1: 131.11
S2: 130.81 – Support line from 124.96. Break below here shifts the the alternate count.
S3: 130.51
Technical summary:
Support at 131.46 did not hold and that forces us to consider an alternate count (see the chart below). As long as the support line from 124.96, which currently is at 130.81, protects the downside, the above chart stays our preferred count, but the two scenarios has an almost fifty-fifty chance at this point. What border us with the above count is the fact, that we have seen a break back into the triangle and that we are almost at the apex (where the two line meets) of the triangle. For this count to remain on top, we need a powerful rally above 132.69 to take off now. If we do not see this rally and continues down towards 130.81 and break below here, the alternate count below becomes the preferred count. This count tells us that we have only just begun wave C of an expanded flat correction, which calls for wave C down to 120.22.
Trading recommendation:
The stop at 131.40 was hit for a loss. Stay neutral for now. But be ready to sell a break below 130.81 or buy upon a break above 132.69.
The material has been provided by InstaForex Company – www.instaforex.com
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