NZD/USD Elliott Wave
For the last few days the NZD/USD pair was trading in a downward move, developing corrective wave (C) (coloured orange) of the bigger wave 2 (coloured purple). Yesterday during the European session, we could observe a descending movement towards the 0.8183 level and we can consider this move as the end of the wave 2 (coloured purple). Therefore, during the early New York session, we could observe a strong bullish mood that bring price to the new daily high at 0.8247 level when developing of the wave (1) (coloured green) starts. At the moment, the NZD/USD pair is trading around 0.9270 level and we are expecting to see the price lower when wave (1) finish 5 smaller waves. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with Fibonacci Retracement (0.8183-0.8280), with Take Profit at 0.8220 (161.8% of wave 1). To reduce the risk, we can use resistance at 0.8300 level as Stop Loss. Also it is necessary to monitor NZD NBNZ Business Confidence and U.S. Core Durable Goods Orders m/m, Unemployment Claims, Durable Goods Orders m/m, Final GDP q/q, Pending Home Sales m/m data that can change the rate of the pair.
Support and Resistance
(S3) 0.8160 (S2) 0.8185 (S1) 0.8200 (PP) 0.8224 (R1) 0.8249 (R2) 0.8264 (R3) 0.8288
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.8265 with Stop Loss 0.8300 and Take Profit at 0.8220 are recommended.