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NZD/USD Elliott Wave
For the last few months the NZD/USD pair was trading in upward move, corrective C wave (coloured purple) of the bigger (D) wave (coloured blue) was developing. At the start of this week (D) wave ended at 0.8476 level and we can observe strong descending movement all week. At the moment the NZD/USD pair is trading around 0.8356 level and we are expecting to see continuation of the bearish move for the next few weeks. In accordance with our wave rules and taking into account that the wave E should retrace 61.8% of the wave C, we can define the potential targets with measuring wave C with take profit at 0.7849 (61.8% of wave C). To reduce the risk, we can use invalidation at 0.8476 level as stop loss.
Support and Resistance
(S3) 0.8277 (S2) 0.8309 (S1) 0.8330 (PP) 0.8362 (R1) 0.8394 (R2) 0.8415 (R3) 0.8447
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.8300 with stop loss 0.8476 and take profit at 0.7849 are recommended.
