Elliott wave Analysis: NZDUSD Trapped in A Bigger Consolidation


NZDUSD can be trading in a bigger triangle correction, which is fully visible on the weekly chart. Here on the daily chart, we observe current recovery as wave A) as part of a leg C of a triangle, which can once complete push price into the following leg D (ideally around the Fibonacci ratio of 61.8.). That said, leg A) can look for resistance and a push into a corrective wave B) around the 0.704 regions.


Now on the 4h charts, we can see that NZDUSD made a nice three-wave drop at the start of December, which we labeled as a corrective pause within higher degree leg A). This corrective retracement now looks completed at the 0.6777 level from where a new intra-day rally started to unfolded, which can be part of a final leg 5 of A). In that case, more upside may follow in a five-wave recovery above the 0.697 level for a final leg 5.


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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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