NZDUSD spiked upside during the Asian session. Will price resume upside? The following 17 July NZDUSD Elliott wave analysis shares technical insights based on Elliott wave theory.
The Kiwi rallied during the Asian session to the 0.6824-0.6850 zone as expected in the last update. With a sustained bullish momentum, we are likely going to see a break above this zone. This week and next week, we might see a much bigger rally as price makes an impulsive wave (A) of the bullish correction up to 0.7060. The market movement is still playing along with our forecast. In the last update, the chart below was used.
Wave (ii) doesn’t appear as a textbook corrective pattern but still look corrective. The wave (ii) dip went briefly below the 61.8% wave (i) Fib-retracement. Price is expected to advance to the 0.6824-0.6850 zone and break above it. The invalidity price still remains 0.6680 – a dip below it would make this forecast invalid. If price can see through the resistance zone with a strong bullish momentum, we should expect an impulsive wave (A) to continue to 0.7060 before the next major bearish correction.
17 July NZDUSD Elliott wave analysis: what next?
The bullish breakout we discussed in the last update is now even more significant. Price has rallied to the intraday support zone as expected and at break upside, we should see price advancing even further. 0.7060 still stands as the ultimate bullish target for the end of wave (A) if price moves as expected. Unless in a case of sudden break below 0.6720, the forecast is much likely to happen. Stay tuned for the next update.
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