Elliott wave Analysis: NZDUSD Is Stopping for A Pullback; More Weakness Expected
NZDUSD is trading lower, unfolding a new five-wave drop out of a triangle correction located at 0.6834 level. We see three waves to the downside completed, meaning a new temporary three-wave rally can follow as wave 4. We already see price picking up from the lows, so wave iv can be in play and can look for resistance near the Fibonacci ratio of 23.6/38.2.
Now, switching to the hourly chart, where we see a three-wave rise in play. We see first impulse up from the 0.6543 low as sub-wave a which can now be followed by a temporary pullback as sub-wave b, with possible support near the 0.6568 level. From there a new rally towards sub-wave c of 4 may follow, above the 0.6611 level.
Let’s keep in mind that current rise is only temporary and can represent a correction in progress within a downtrend. More weakness is so expected.
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