NZD/USD Elliott Wave
Last week the NZD/USD pair was trading in a downward move, developing impulsive 5 wave (coloured purple) of the bigger C wave (coloured blue). Yesterday during the Asian session we could observe an ascending movement towards the 0.8028 level and we consider this move as the end of the corrective (4) wave (coloured purple). Therefore, during the early European session this major pair did not manage to hold this level and we could observe a strong downward movement that brought this pair to the new low at 0.7967 level (end of the C wave). At the moment the NZD/USD pair is trading around 0.8006 level and we are expecting to see price higher today. We still do not have clear view where the 1 wave (coloured purple) should finish, but we are expecting to see the end of this wave around 0.8050 level. To reduce the risk, we can use support at 0.7985 level as Stop Loss.
Support and Resistance
(S3) 0.7930 (S2) 0.7954 (S1) 0.7969 (PP) 0.7992 (R1) 0.8016 (R2) 0.8031 (R3) 0.8054
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.8015 with Stop Loss 0.7985 and Take Profit 0.8050 are recommended.