Elliott Wave Analysis On NZDUSD And GOLD
NZDUSD is moving up right now after that break down to 0.7030 yesterday, which occurred after a triangle in wave 4). We know that triangle patterns are predicting finale legs within a bigger cycle, so we think that yesterdays drop was fifth wave of an impulse, which suggests a new turn up now. We are observing an A)-B)-C) rise now back to 0.7170-0.7230 area where bears may show up again with even stronger sell-off.
Slow, choppy and overlapping price action within an upward channel is normally a very strong indication of a corrective pause within a downtrend. And this is exactly what we think that gold is doing; we see wave four which is about to send prices down into wave five, ideally by the end of the week to 1200 area.
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