NZD/USD: A Bearish Case
NZD/USD has ranged for several weeks now as there hasn't been a significant breakout since Feb. 25, 2021 - 25 March, 2021 however, our Elliott Wave analysis suggests that this will change soon.
Technical points to consider for our bearish case:
Elliott Wave suggests that it's realistic to expect a corrective Wave B to complete with a minimum target at the 0.65000 price level.
Our current level of invalidation rests at 0.73165. If broken, we'll look to reevaluate our wave count.
Thank you for reading, let us know your thoughts in the comments. Feedback is appreciated.
Cheers!
Technical points to consider for our bearish case:
- If we pay close attention to the Elliott Wave structure that NZD/USD has developed from Mar 19, 2020 - May 26, 2021, we can see a clear 5 wave impulse structure with a truncated fifth wave to complete Wave A.
- For our classical technical analysis traders, we can see a clear Head & Shoulders pattern at the peaks of Wave III, Wave V of (III) and Wave (V) of A.
- Additionally, we notice that the significant round number, 0.73 has been respected as a significant level of resistance.
Elliott Wave suggests that it's realistic to expect a corrective Wave B to complete with a minimum target at the 0.65000 price level.
Our current level of invalidation rests at 0.73165. If broken, we'll look to reevaluate our wave count.
Thank you for reading, let us know your thoughts in the comments. Feedback is appreciated.
Cheers!
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