New Zealand Dollar 3 Wave Movements Indicative of Triangle or Flat
60 Minutes Bars
Prepared by Jamie Saettele, CMT
I am zooming in on NZDUSD structure to show the 3 wave movements from the low at 7636. 3 wave movements are corrective, which supports the assertion that a 4th wave is unfolding from the low. There are 2 possibilities for the 4th wave – a triangle or flat. In a flat, price would exceed 7957 before reversing to the downside. The proximity of the Elliott channel (not shown) suggests that a triangle is more likely, in which case the range will tighten before a break to a new low. Resistance is 7900. A bearish objective is 7500 (larger channel and mid March pivot).
Trend Strength (M,W,D) – 2, (1), (2)
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday), technical analysis of currency crosseson Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forex Stream. A graduate of Bucknell University, he holds the Chartered Market Technician (CMT) designation from the Market Technician Association. He is the author of Sentiment in the Forex Market. Send requests to receive his reports via email to firstname.lastname@example.org and follow hom on Twitter @JamieSaettele.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.