Guest Commentary: Developing Elliott Wave Short Set-up in NZD/USD
The shorter-term charts of NZDUSD show the pair is currently in wave B, which is taking the form of a seven-swing structure. The previous rally to 0.8257 occurred in three waves, and this completed wave (a) of the larger B wave structure. This was followed by a flat correction to 0.8205, which then completed wave (b) of larger B wave structure.
While above this level, NZDUSD should put in another leg higher to 0.8344, which is the 76.4% Fibonacci retracement of wave A and the 61.8% extension of wave (a) of B.
The hourly cycles are negative, which will not favor longs in the pair, but traders can look for attractive short opportunities after the current wave concludes around 0.8344. That is, as long as the pivot at 0.8432 remains intact.
By Daud Bhatti of Elliottwave-Forecast.com