Having completed the corrective wave, NZDUSD now could be on its way down to resume the major downtrend.
Added text:
It appears that Kiwi still is in a major downtrend that is supported by the Elliot Wave analysis. Following 5 waves down, NZDUSD potentially completed corrective wave C as can be seen on the chart. For the last four days it has been consolidating with the 70 pip range, showing the significant support at 0.7500 as well as strong resistance at 0.7570 hurdle.
The 0.7570 resistance has also been confirmed by our fib retracement level of the downtrend trendline breaking point (marked red on the chart) as well as Doji reversal candle. Similar resistance can be witnessed back on 22nd of January 2015. And now if we bring our attention to the uptrend trendline (marked green on the chart), clearly Friday close has been lower it, confirming the bearish momentum.
The buying opportunity is not there unless Kiwi clears the 0.7570 level to the upside, something that seems unlikely at this point due to high USD demand around the world. At this point bears should take over, bringing NZDUSD down to one of our support levels. Shorting Kiwi on a pullback to 0.7520 area or breakout of the most recent low at 0.7505, with stop loss above either 0.7550 or 0.7570, targeting 0.7440 area seems most appropriate.
Support: 0.7480, 0.7430, 0.7370
Resistance: 0.7550, 0.7570, 0.7680
Added text:
It appears that Kiwi still is in a major downtrend that is supported by the Elliot Wave analysis. Following 5 waves down, NZDUSD potentially completed corrective wave C as can be seen on the chart. For the last four days it has been consolidating with the 70 pip range, showing the significant support at 0.7500 as well as strong resistance at 0.7570 hurdle.
The 0.7570 resistance has also been confirmed by our fib retracement level of the downtrend trendline breaking point (marked red on the chart) as well as Doji reversal candle. Similar resistance can be witnessed back on 22nd of January 2015. And now if we bring our attention to the uptrend trendline (marked green on the chart), clearly Friday close has been lower it, confirming the bearish momentum.
The buying opportunity is not there unless Kiwi clears the 0.7570 level to the upside, something that seems unlikely at this point due to high USD demand around the world. At this point bears should take over, bringing NZDUSD down to one of our support levels. Shorting Kiwi on a pullback to 0.7520 area or breakout of the most recent low at 0.7505, with stop loss above either 0.7550 or 0.7570, targeting 0.7440 area seems most appropriate.
Support: 0.7480, 0.7430, 0.7370
Resistance: 0.7550, 0.7570, 0.7680