🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

NZD/USD Elliott Wave Analysis: Possible 5 Wave Move In The Making

Published 01/18/2017, 12:32 AM
Updated 03/09/2019, 08:30 AM
NZD/USD
-

NZD/USD move up from 12/23 low is extending and as pair keeps extending higher with shallow pull backs, it looks like the move up from 12/23 low is unfolding as an Elliott wave impulse when pair is still in wave 3.

Rally to 0.7043 is labelled as wave 1 and dip to 0.6945 is labelled as a FLAT wave 2. Up from there wave 3 remains in progress towards 0.7266 - 1.7315. Once wave 3 is complete, expect the pair to pull back in wave 4 to correct the cycle from red 2 low and turn higher in wave 5 to complete a 5 wave move up from 12/23 (0.6857) low.

Proposed wave 4 pull back should unfold in 3, 7 or 11 swings and would typically complete between 23.6 - 38.2 Fibonacci retracement of wave 3. Wave 4 pull back should not retrace more than 50% of wave 3 as per the new guidelines that we have introduced ourselves and also not overlap with wave 1.

This means proposed wave 4 pull back, when seen, should stay above 0.7043 for the idea of impulse to remain valid. If wave 4 pull back retraces more than 50% of wave 3 or gets below 0.7043, that would mean move up from 0.6857 low is no longer an impulse but could still be wave 4 of a diagonal higher. If the pivot at proposed red 2 (0.6945) low gives up, that would suggest cycle from 0.6857 low ended as an ABC (zig-zag)
NZD/USD 60 Minute Chart

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.