NZDUSD Technical Analysis 29 March 2017

1 Hour Elliott Wave Analysis: NZDUSD is currently in a Elliott Wave double ((w))-((x))-((y)) correction lower on the 1 hour time frame and we expect red wave X to terminate in the 0.6967 – 0.6943 area where the pair should bounce higher. We do not recommend selling the pair to the proposed red wave X terminating area but rather recommend buying in that area for the next possible move higher. The bullish scenario is invalid if price moves below the 0.6886 level.


1 Hour Bullish Pattern: A possible Bullish Pattern (Red) is clear and visible on the 1 hour chart. The red bullish pattern Point D terminates near the 0.618% Fib. retracement and the 1.0 (Equal legs) Fib. extension levels. Also looking back at previous price action we can also see there is a support/resistance zone where price has bounced off. Putting all this together with the above Elliott Wave (chart above) we believe the Bounce Zone (Grey box) will provide good support and NZDUSD should bounce higher off this zone if price reaches this area.


If looking to buy NZDUSD traders should be patient and wait for the 1 hour red point D/wave red X pullback to the possible bounce zone (grey box). Waiting for the red point D/wave red X pullback/retrace to the possible bounce zone will offer a better risk/reward trade setup. Stop loss should be placed at 0.6910. Below 0.6910 will invalidate the red bullish pattern. Target is at 0.7130

Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade.

NZDUSD remains bullish as long as the October 8/2018 low remains untouched. On the Daily chart there are clear visible bullish patterns that can be seen. In the chart below, market patterns are used to determine where price can possibly pause and bounce higher. The green bullish AB=CD pattern triggers BUYS at the Fib. extension 1.0% level. The green AB=CD pattern is also close to where the blue bullish pattern triggers BUYS which is at the BC 0.50% Fib. retracement level. Traders should watch these two levels for a possible reaction bounce higher because there has been previous support/resistance price action in the past. Another bullish pattern can also possibly form if price continues lower towards the pink XA 1.618% Fib. retracement level where the pink bullish pattern triggers BUYS. Traders will need to wait and watch how price reacts at the possible support zone (blue box) and see if the market reacts higher to any of these bullish patterns. If looking to trade NZDUSD stops should be placed at the point B low of the blue bullish pattern looking for a rally higher to extend above the December 4/2018 highs. Only time will tell what NZDUSD will do but at least now you are aware of the possible area where Kiwi can bounce from.

NZDUSD Daily Chart 12.19.2018

Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade.