Hello fellow traders. In this technical blog we’re going to take a quick look at the past Elliott Wave charts of NZDUSD. We’re going to explain the structure and see how we guided our members through this instrument.
The chart below is $NZDUSD 4 hour chart from 02.28.2017. Our analysis suggests the price is correcting the cycle from the 0.6854 low. First leg W red has ended on 02/14 as expanded flat. On 02/21 date we got lower low: wave ((b)), and we got bearish sequences from the peak. In a mean time short term structure got little bit tricky. X red connector turned into irregular Flat correction. Our Elliott Wave analysis suggests X red is done at 0.7246 high. Consequently, the pair is ideally within Y red leg, looking for more downside, targeting 0.70044-0.69469 area.
NZDUSD 4 Hour Chart: 28 February
Now let’s take a look at the short term structures:
NZDUSD 1 Hour Chart: 24 February
X red is done at 0.7246 high and as far as the price holds below that level further weakness should ideally follow. Current 0.71925-0.71783 area can provide 3 wave bounce before decline resumes.
NZDUSD 1 Hour Chart: 28 February
Short term price x red correction has turned into irregular flat against the 0.72466 peak. So far, the mentioned peak has held nicely and we’re forecasting further decline within Y red leg toward 4 Hour target at 0.70044-0.69469
NZDUSD 1 Hour Chart: 1 March
We got nice decline and separation from the peak. As the pair has made new short term low we got more clue in proposed bearish view and we’re recommending selling the rallies in 3,7,11 swings to our members. Currently price is showing clear 3 swings from the low suggesting that potential sell area comes at 0.7154-0.7184 .
NZDUSD 1 Hour Chart: 4 March
The pair found sellers at 0.7154-0.7184 and short term correction ended at 0.71692. We got nice decline as expected. Although the price reached 4 hour target at 0.7004 , due to a market correalation and incomplete pull backs in the rest of commoditiy instruments we switch short term count little bit and calling for 5 wave structure in the cycle from the 0.7247 peak, where ((ii)) ended at 0.71692. Currently about to complete short term ((iv)) bounce , looking for further extension lower. Next technical area comes roughly at 1.236 fib extension :0.6946. (According to 4 hour chart we presented above)