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 4h

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

• 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

Written by www.ew-forecast.com
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