In this technical blog, we are going to take a look at the past performance of NZDUSD, 4-Hour Elliott wave Charts that we presented to our members. But before looking into the Charts, we need to understand the market nature first. The market always fights between the two sides i.e Buying or Selling. We at Elliott Wave Forecast understand the Market Nature and always recommend trading the no-enemy areas. We called blue boxes on our charts as no-enemy areas. They usually give us the reaction in favor of market direction in 3 swings at least. Now, let us take a quick look at the NZDUSD Charts and structure below:
NZDUSD 4 Hour Elliott Wave Chart
Above is the 4hr Elliott wave chart update from 9/02/2021. In which, the decline from February 2021 peak ended wave (W) at $0.6802 low. Up from there, the pair corrected the cycle from the February peak in wave (X) bounce. The internals of that bounce unfolded as Elliott wave zigzag structure where wave A ended at $0.6983 high. Wave B ended at $0.6929 & Wave C was expected to find sellers at $0.7112- $0.7225 blue box area. From there, sellers were expected to appear looking for more downside or for a 3 wave reaction lower at least.
NZDUSD Latest 4 Hour Elliott Wave Chart
This is the latest 4hr Elliott wave Chart from the 9/21/2021 update. In which the pair is showing a strong reaction lower taking place from the blue box area at $0.7112- $0.7225. Right after ending the zigzag correction within the blue box area. Allowed members to create a risk-free position shortly after taking the short positions at the blue box area. However, a break below $0.6802 low remains to be seen to confirm the next extension lower & avoid double correction higher. Note: later on with more data, we were able to upgrade the primary degree of the structure.
Source: NZDUSD Turning Lower From Elliott Wave Blue Box Area