NZDUSD: Corrective Wave Ending, Impulsive Downside Move Ahead
Hello Traders,
I would like to bring you my view of NZDUSD currency pair.
The NZDUSD currency pair has been undergoing a corrective wave (4) since the 31st of May. It is evident that the correction is nearing its completion, as indicated by the complete formation of lower degree waves (a) and (b), with wave (c) reaching its termination zone. This development suggests the imminent commencement of an impulsive wave (5) of a higher degree to the downside.
Assuming the absence of a combination pattern within wave (4), a significant downward move can be anticipated from the current zone. However, if a complex structure does emerge, it is possible that the market will experience a period of consolidation before the anticipated drop occurs. As it stands, wave (4) is almost twice the time it took wave (2) to play out, which in my opinion is in line with the guideline of alternation. To validate this outlook, it is important to monitor the price action within the current zone and 0.61795 price level. A breach of 0.61842 price level would invalidate this analysis.
In terms of targets, my initial objective is set at 0.59866, while my medium-term target is 0.59365.
Cheers!
I would like to bring you my view of NZDUSD currency pair.
The NZDUSD currency pair has been undergoing a corrective wave (4) since the 31st of May. It is evident that the correction is nearing its completion, as indicated by the complete formation of lower degree waves (a) and (b), with wave (c) reaching its termination zone. This development suggests the imminent commencement of an impulsive wave (5) of a higher degree to the downside.
Assuming the absence of a combination pattern within wave (4), a significant downward move can be anticipated from the current zone. However, if a complex structure does emerge, it is possible that the market will experience a period of consolidation before the anticipated drop occurs. As it stands, wave (4) is almost twice the time it took wave (2) to play out, which in my opinion is in line with the guideline of alternation. To validate this outlook, it is important to monitor the price action within the current zone and 0.61795 price level. A breach of 0.61842 price level would invalidate this analysis.
In terms of targets, my initial objective is set at 0.59866, while my medium-term target is 0.59365.
Cheers!
Trade closed: stop reached
