NZDUSD Short Term Elliott Wave view suggests the rally from 8/31 low unfolded as a double three Elliott Wave structure and ended with Minor wave W at 0.7434. Up from 8/31 low (0.7127), Minute wave ((w)) ended at 0.7337, Minute wave ((x)) ended at 0.7182, and Minute wave ((y)) of W ended at 0.7433. Minor wave X pullback is in progress and unfolding as a zigzag Elliott Wave structure. Minute wave ((a)) of X is proposed complete at 0.7296, and Minute wave ((b)) of X is in progress to correct cycle from 9/20 high. Afterwards, pair should turn lower in Minute wave ((c)) of X towards 0.7199 – 0.7244 before the rally resumes . We don’t like selling the pair. Expect buyers to appear once Minor wave X pullback is complete as far as pivot at 0.7127 low stays intact.
NZDUSD 1 Hour Elliott Wave Chart
Zigzag is a 3 waves corrective pattern which is labelled as ABC. The subdivision of wave A is in 5 waves, either as impulse or diagonal. The subdivision of wave B can be any corrective structure. Finally, the subdivision of wave C is also in 5 waves, either as impulse or diagonal. Thus, zigzag has a 5-3-5 structure. Wave C typically ends at 100% – 123.6% of wave A.
