Elliott Wave Analysis: NZDUSD Trading In A Consolidation; Lower Levels Could Be Around The Corner 

nzdusd-analysis

Gregor - Author BIO photoNZDUSD is in a strong downtrend for the last few weeks, which is expected to continue soon if we consider a five wave fall from 0.7402 followed by a recent bounce towards the 0.7171 level, which could be the first leg of a minimum three wave rise in corrective wave 2), labeled as wave A. If that is the case, then drop from the mentioned level was sub-wave B that seems completed and current bullish development could be wave C the final leg of this three-wave rise. As we see on the chart, we labeled a possible ending diagonal in wave C, that may unfold because of overlapping price movement. The ideal reversal zone for this whole correction may be around 0.7240 area.

An ending diagonal is a powerful reversal pattern and when it occurs, a sharp reversal often follows, so basically, we could be in for more weakness towards the 3) wave, if price trades as interpreted.

NZDUSD, 4h

nzdusd-analysis

 

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By Gregor Horvat

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