NZDUSD Is Looking Bearish Against 0.8415-Elliott Wave Analysis

By: Gregor Horvat | Mon, Nov 11, 2013
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The USD moved sharply to the upside on Friday after NFP report, but moves were not so significant against some majors. EUR/USD per example is still above 1.3290 low while AUDUSD and some other commodity currencies seems to be much weaker.

Today, we are looking at NZDUSD that seems to be bearish for wave E) to complete a weekly triangle. So if wave E) is going lower, then short term opportunities could be on lower time frames. On the 4h chart per example we see five waves down and three up to 0.9413 where rally looks completed after recent broken trend line that is now pointing for decline to a new low and possible even to 0.8100 in this week. Any taken shorts on this pair should have stops above 0.9400.

NZDUSD weekly

NZDUSD Weekly Chart

NZDUSD 4h

NZDUSD 4-Hour Chart


Elliott Wave Education: Triangle Pattern

A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

Contracting triangle

Idealized Elliott Wave Contracting Triangle

• Structure is 3-3-3-3-3
• Each subwave of a triangle is ussaly a zig-zag
• Wave E must end in the price territory of wave A
• One subwave of a triangle usually has a much more complex structure than others subwaves
• Appears in wave four in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes, wave X or wave Z in a triple threes

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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