20 July NZDUSD Elliott wave analysis

NZDUSD has a huge bullish potential up to 0.7060 in the coming weeks. The following 20 July NZDUSD Elliott wave analysis gives technical insights on NZDUSD based on Elliott wave theory.

The Kiwi could be on its way to a strong bullish breakout. In the last update, we looked at the likely completion of a double zigzag 2nd wave of an expected bullish impulse wave. The double zigzag lies perfectly within a channel and it seems price is ready to go upside if some levels are taken out. The impulse wave has been projected to be the wave (A) of a larger degree zigzag which could extend to 0.7060. The chart below was used in the last update.

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. 

20 July NZDUSD Elliott wave analysis: what next?

The double zigzag wave (ii) seems to have ended at the base of its channel at 1.6912. A strong break below 1.692 could lead to a break below 1.6680 which would invalidate this forecast. A break above the wave x-y (in purple) upper trendline would be the first confirmation of an impending bullish roar. A break above the wave (ii) channel would be a more conservative confirmation of a bullish move up to 0.7060. Stay tuned for the next update.

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