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NZD/USD Elliott Wave
For the last few days the NZD/USD pair was trading in an upward move, developing Triangle B wave (coloured blue) of the bigger wave (2) (coloured green). Yesterday during the Asian and European sessions we could observe sideways movement in this major pair between 0.8075 and 0.8105 level. Therefore, during the early New York session, the NZD/USD pair did not manage to hold this level and the price aggressively pushed higher to the new daily high at 0.8145.Today during the Asian session we could observe continuation of the bullish mood and the price reached a new high at 0.8185 level and we can consider this move as the end of the final E wave of the bigger wave B (coloured blue).In accordance with our wave rules and taking into account that the wave C retraces 100% of the wave A, we can define the potential targets with Fibonacci extensions (0.8224-0.8038-0.8185), with Take Profit at 0.7998 (100% of wave A). To reduce the risk, we can use invalidation point at 0.8224 level as Stop Loss.
Support and Resistance
(S3) 0.7978 (S2) 0.8046 (S1) 0.8085 (PP) 0.8114 (R1) 0.8153 (R2) 0.8182 (R3) 0.8250
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.8160 with Stop Loss 0.8224 and Take Profit 0.7998 are recommended.
