Technical Analysis

NZDUSD Impulsive Trend Could Weigh On Prices

29-Mar-2021 01:16:03

By Roman Onegin
The current NZDUSD pair shows the completion of a bullish triple zigzag consisting of primary sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

Following this, a bearish trend began. Impulse wave (1) and double zigzag wave (2) have ended. In addition, so have the minor sub-waves 1 and 2 which are included in the intermediate impulse wave (3).

In the short term, we could expect the completion of minor wave 3, then the price will rise slightly in correction 4. Wave 5 could then lead prices down to the 0.667 area.

At that level, impulse (3) will be at 162.8% of impulse (1).

An alternative scenario shows the primary triple zigzag has completed only wave W which is the first part of the cycle trend.

Thus, the cycle intervening wave X is currently under development. Most likely, it will take the form of a double Ⓦ-Ⓧ-Ⓨ zigzag.

In the near term, a slight decline is likely in the intermediate impulse (C) to 0.691, where we will see the end of the first primary wave Ⓦ. At that level, intermediate impulses (A) and (C) will be equal.

Finally, we are waiting for the development of the primary intervening wave Ⓧ. The price could rise to 0.733. At that level, wave Ⓧ will be at 76.4% of wave Ⓦ.

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