NZDUSD is at the verge of a strong bullish move in the coming days. Why? The following 3 July NZDUSD Elliott wave analysis gives insights into a bullish NZDUSD based on Elliott wave theory.
According to Elliott wave theory, price rallies or declines in 5-waves trend followed by a 3-wave correction. The larger the trend, the larger the correction could be. These trend and correction appear in distinct patterns that can be measured and recognized. Not perfect and can be subjective at times but is very useful if well used. A bearish impulse wave started in NZDUSD since the last week of January 2018 and it seems to have reached the final stages. Is price getting set for a 3-wave correction upside?. That’s a resounding YES according to our Elliott wave forecast. From the last update, we had the chart below.
The 5th wave is probably complete or close to completion. It has gotten to a strong reversal zone and could start a big rally from any price in-between. However, it’s important price leads the way. A breakout above the channel is one way to confirm. Other methods like divergence, candlestick patterns, technical indicators or the combination of all, can also be used. If there are no reversal signals from price actions, the drop could extend even below 0.6688.
The reversal zone was measured at 0.6779-0.6688. After the last update, price didn’t break upside but dipped even further. Despite the further price dip, it still remains above 0.6688 lower reversal zone boundary. Will price shoot up from there? The chart below shows the new update.
3 July NZDUSD Elliott wave analysis; what next?
The chart above forecasts a big rally coming soon. If price breaks above 0.6775 upside, we would likely see a strong corrective Zigzag rally above 0.7060 in the coming days. For an interested buyer, it’s important to ascertain the market has bottomed by waiting for a significant rally above 0.6775 and buy the next dip. If price stays below 0.6775 much longer, it could break below 0.6683 for the impulse wave to take lower prices. Stay tuned for the next update.
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