After the two-year trend, the rising wave of the New Zealand currency reached the upper limit of the potential reversal zone. In this zone, there is a powerful resistance level of the largest scale of the chart. The probability of further development of the current wave is preserved. But before a possible wave breakthrough, it is necessary to adjust, at least in the last section.
The downward movement, which began on July 27, formed the first part of the reversal structure, preceding the change in the inter-week trend. In the last 3 days, there is a corrective flat on the chart. The lifting potential is limited by the limits of the calculated resistance zone.
At the upcoming sessions, the completion of the recovery and the change in price direction are expected. The most likely lower limit of the daily course of the pair is the support zone.
Boundaries of the resistance zone:
- 0.7460 / 90
Boundaries of the support zone:
- 0.7390 / 60
Explanations to the figures: For simplified wave analysis, a simple type of wave is used that combines 3 parts (A; B; C). Of such waves, all kinds of correction are composed and most of the impulses. On each considered time-frame the last, incomplete wave is analyzed.
The zones marked on the graphs are indicated by the calculation areas in which the probability of a change in the direction of motion is significantly increased. Arrows indicate the wave counting according to the technique used by the author. The solid background of the arrows indicates the structure formed, the dotted one indicates the expected wave motion.
Note: The wave algorithm does not take into account the duration of the tool movements in time. The forecast is not a trading signal! To conduct a transaction, you need to confirm the signals used by your trading systems.
