FX.co ★ NZD/USD Weekly Wave Analysis

NZD/USD Elliott Wave
Since early December the NZD/USD pair has been trading in a downtrend, and corrective wave (A) (coloured red) of the bigger wave E (coloured purple) has been developing. During the Friday's European session we could observe descending movement towards the 0.8222 level. Therefore, during the New York session this major pair did not manage to hold this level and started moving sideways between 0.8215 and 0.8250 level. At the moment, the NZD/USD pair is trading around 0.8225 level, and we expect continuation of the bearish movement for the next few weeks. In accordance with our wave rules and taking into account that the wave E should retrace 61.8% of the wave C, we can define the potential targets with measuring wave C with take profit at 0.7848 (61.8% of wave C). To reduce the risk, we can use resistance at 0.8352 level as stop loss.

Support and Resistance
(S3) 0.8066 (S2) 0.8145 (S1) 0.8189 (PP) 0.8268 (R1) 0.8312 (R2) 0.8391 (R3) 0.8435

Trading Forecast
According to the Elliott Wave rules, today the trend is expected to begin the downward movement. That is why short positions at level 0.8220 with stop loss 0.8352 and take profit at 0.7848 are recommended.