NZDUSD (KIWI) Taking The Bearish Road – Elliott wave analysis
NZDUSD is in a clear, bearish pattern down from 0.674 high, now trading in the middle of an impule. We labelled waves 1-2 and 3 already completed, so latest recovery from the 0.6377 lows can be only a wave 4 correction within the trend, which can face resistance/bearish reversal at the 0.650 region, also region of ther former wave iv of one lesser degree, and region where Fibonacci ratio of 38.2 can react as a turning point.
Once wave 4 find resistance, and more leg lower as wave 5 may started unfolding, and targeting the 0.633/0.630 zone.
On the daily chart of the same pair, we believe this impulse (down from 0.674 high) can be part of a three-wave, higher degree A)-B)-C) reversal, which can in weeks and months ahead see even lower prices.
That said once wave A) fully develops, price may experience a corrective wave B) recovery, before wave C) lower follos.
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