$NZDUSD Daily Elliott Wave Analysis 7.13.2014

NZDUSD is ending a cycle from June 24 2013 which is taking the form of a WXY structure in which wave ( W )  was a FLAT. Dip to 0.8052 (2.4.2014) was wave ( X ) connector which was followed by 3 waves up to 0.8701 (4.1.2014) which we have labelled as wave ( A ) of ( Y ).This was followed by a FLAT in wave ( B ) to 0.8399 (6.4.2014) low. As wave ( A ) was in 3 waves so we are expecting a corrective move ( 3, 7, 11 swings) from 0.8399 low.

Best reading of shorter cycles suggests wave A and B of last leg have completed. While above 0.8662 (6.25.2014) in 1st degree and above 0.8399 (6.4.2014) low in 2nd degree, price can reach as high as 0.8918 which is equal legs of ( W ) related to ( X ) and may be 0.9122 which is 1.236 ext of ( W ) related to ( X ) to end the cycle from June 2013 lows. After that we expect to see biggest pull back in the pair since June 2013 lows.

Shorter cycles are still positive but cycle is getting mature. It would be a good idea for traders holding longs to tighten their risk to lock in profits and look to book profits in 0.8918 – 0.9122 area where we expect to see sellers appearing for a 3 wave pull back.

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