Forex Trading Library

NZDUSD: How Far Can Bulls Go?

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The current structure on NZDUSD hints to further upside as part of a forthcoming triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ combination. The short-term outlook seems rather unchanged even in the event this combination turns out to be a double Ⓦ-Ⓧ-Ⓨ pattern.

Despite being far from completing a triple or a double combo the most recent ascend points to higher levels. This potential move could have wave (C) of Ⓨ ending successfully, as waves (A) and (B) have already run their course.

With intermediate wave (C) in play and minor waves 1 to 4 out the way, we are reaching out to interesting levels. The completion of the most recent minor correction suggests that another bullish minor impulse could push prices higher.

The projected level we are looking at is near the 0.671 area. This would respect the 50% Fibonacci extension guideline when compared to wave 3.

An alternative scenario indicates that minor wave 4 could have ended near 0.655, without forming a corrective triangle.

The correction in this scenario is identified as a double combination followed by an impulse. That could have minute wave three ending at the 61.80% Fibonacci extension of minor 3, near 0.6696.

Whereas, the bullish trend could end near 0.673, where wave five of the minute structure could run out of steam.

At that level, minor impulse 5 will be at the 78.6% extension of minor 3.

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