NZDUSD made a nice five-wave move within wave A), the first leg of a bigger, three-wave recovery, and later it made a deep three-wave pullback as seen on the chart. We can see that a zig-zag correction had played out on the pair and found support at the lower Elliott wave triangle line.
We are talking about a potential support because we can see how the price is sharply rising from the mentioned zone. Remember, a clear, five-wave rally, in this case, means that the bigger correction can be completed and that a bullish continuation is here. As such more upside may be expected to follow towards wave C), to around the 0.709/0.716 region.
On the 4h chart, we have a closer look at current recovery from the 0.647 area, where a previous EW leading diagonal had unfolded. The current sharp rally is impulsive, which means that trend is going to continue to the upside. That said, be aware of temporary pullbacks, which may show up during this rise; we are talking about a minor wave iv, that can retrace the pair towards the 0.660/0.657 region.
NZDUSD, 4hGet the 5 most predictable currency pairs