19 July NZDUSD Elliott wave analysis

NZDUSD takes its bearish correction deeper amidst an advancing Dollar price. The following 19 July NZDUSD Elliott wave analysis looks at NZDUSD technical analysis based on Elliott wave theory.

The Kiwi has resumed downside since the Asian session today. This could be part of a bearish correction from the 0.6824-0.6850 resistance discussed in the last update. The dip from 9-10 July is looking like an emerging double zigzag corrective pattern. Will there be a strong move upside at the completion of this pattern? The chart below was used in the last update yesterday.

Is price going lower than 0.6720 to complete wave (ii) with a zigzag corrective pattern? Price is expected to stay above 0.6680 and then break above the 0.6824-0.6850 resistance. The real battle seem to be between these two price levels. If price breaks below 0.6680, the bearish trend should continue. The preferred scenario is shown in the chart above. If price successfully breaks above the resistance zone, we can look forward to 0.7060. 

19 July NZDUSD Elliott wave analysis: what next?

Yesterday’s minor rally was not strong enough to break above the resistance zone. Price is dropping back below the 61.8% Fibonacci retracement. A double zigzag corrective pattern is still possible around 0.67 or slightly below. Price should be rejected at the base of the zigzag channel. A strong break below the base could lead to a break below 0.6680 and will invalidate this outlook. If price holds as expected, we should expect another round of rallies up to the 0.7060 first bullish target. Stay tuned for the next update.

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