NZDUSD is making new waves upside. Will the rally continue? The following 5-6 July NZDUSD Elliott wave analysis looks at the technical forecast of NZDUSD based on Elliott wave theory.
The Kiwi currency has bounced off from our reversal zone. At this zone, there was high probability of price advancing. This currency pair completed an impulse wave pattern that started in April. The impulse wave was very bearish. We highlighted 0.6775-0.6683 as the probable reversal zone. Price dipped below 0.6683 and found support at 0.6775. It has now rallied back to 0.6683 and looking likely to break above it. Should we start counting a corrective wave from 0.6775? It seems to make sense. High impact events are coming today and tomorrow (FOMC and NFP) which will affect USD. We should expect big moves in the short term. Will the outcome of these events trigger the much expected bullish correction? It’s very much likely. The chart below shows the last update.
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.
5-6 July NZDUSD Elliott wave analysis: what next?
Price is gradually making a new bottom just between 0.6775 and 0.6683 reversal zone. There is a possibility of a head and shoulder pattern as we count an impulse wave (A) upside. If price moves as expected, we should expect it at 0.7060 at least. This forecast will be invalid if price breaks below 0.6683. Stay tuned for the next update.
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