NZD/USD Elliott Wave
Since our last analysis the NZD/USD pair was trading in a downward move like we expected developing final C wave (coloured blue) of the bigger (2) (coloured green). During the early Asian session we could observe an ascending movement towards the 0.8185 level and we can consider this move as the end of the E wave of the bigger (B) wave. Therefore, during the European and New York sessions this major pair started pushing lower when developing of the C wave starts and price reached a new daily low at 0.8125 level. At the moment the NZD/USD pair is trading around 0.8115 level and we are expecting to see the price around 0.8000 soon. 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 0.8000 (100% of wave A). To reduce the risk, we can use resistance at 0.8145 level as Stop Loss.
Support and Resistance
(S3) 0.8085 (S2) 0.8108 (S1) 0.8123 (PP) 0.8146 (R1) 0.8169 (R2) 0.8184 (R3) 0.8207
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.8110 with Stop Loss 0.8145 and Take Profit 0.8000 are recommended.