NZDUSD Pattern Suggests Downtrend is Over In The Meantime
NZDUSD'S 4-hourly chart reveals the entire price structure from the Jan 2020 top. As you can see, it is a textbook five-wave impulse, labeled (i)-(ii)-(iii)-(iv)-(v). It unfolded within the parallel lines of a trend channel and the sub-waves of wave (iii) are also visible.
The market apparently took the guideline of alternation into account, too. Wave (ii) was a sideway expanded flat pattern, while wave (iv) was a sharp correction.
If this count is correct, Elliot Wave theory postulates that a three-wave correction in the other direction follows every impulse. For NZDUSD, this means we can expect a three-wave reversal from the current market level.
The anticipated retracement has the potential to erase the entire fifth wave. A rally back to the support area of wave (iv) or even higher is very likely. 0.6960 resistance area seems like a reasonable target in the next couple of weeks.
What's your view on NZDUSD?
The market apparently took the guideline of alternation into account, too. Wave (ii) was a sideway expanded flat pattern, while wave (iv) was a sharp correction.
If this count is correct, Elliot Wave theory postulates that a three-wave correction in the other direction follows every impulse. For NZDUSD, this means we can expect a three-wave reversal from the current market level.
The anticipated retracement has the potential to erase the entire fifth wave. A rally back to the support area of wave (iv) or even higher is very likely. 0.6960 resistance area seems like a reasonable target in the next couple of weeks.
What's your view on NZDUSD?
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.