NZDUSD Trading Bearish


Hi traders,

On NZDUSD we are tracking a falling price activity which can be counted in five waves from 0.7059 high. We believe this five wave drop can be a higher degree wave 5) as part of a  bigger bearish cycle, which in Elliott wave theory must be structure by five legs. Current drop that is on display is leg five, that can touch levels near the Fibonacci projection zone of 161.8/200.0 from where a new temporary bounce may follow.

A bounce in impulsive fashion from the lows and above the upper channel lines would confirm a completed decline and a minimum three-wave recovery.


On the intra-day chart below we dissect even further the price structure since 0.6920 level, and as we can see pair is making a clear impulsive reaction. An impulse is a clear wave in five minor legs, which is still not the case here as we are still looking for two minor legs. That being said, currently we see price probably unfolding corrective wave iv), that can once completed push price into a new low towards 0.6766-0.6720 area.



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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 His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on 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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