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 0.7434. Minor wave X pullback is proposed complete at 0.7276 and unfolded as a zigzag Elliott Wave structure. Minute wave ((a)) of X ended at 0.7314. Minute wave ((b)) of X ended at 0.7364 and Minute wave ((c)) of X is proposed complete at 0.7276. Near term, while pullbacks stay above 0.7276, and more importantly as far as pivot at 8/31 low (0.7127) stays intact, expect pair to extend higher. We don’t like selling the pair.

NZDUSD 1 Hour Elliott Wave Chart

(Click to enlarge)

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.