Ahead the FOMC meeting and the NZD GDP report tomorrow, one would expect more volatility from this pair. Will the bearish trend continue or the bulls will show so fight? The following looks at the technical side based on 14 March NZDUSD daily Elliott wave analysis.
14 March, AtoZForex – NZDUSD has been one of the best performers in recent weeks with an unwavering bearish intraday strength. The recent dip started on 7th February and continues after a short sideway rally from 14th to 28th February. In the last update, we labelled the dip as a corrective- a-b-c- awaiting a break above 0.7050. We used the chart below.
We were riding on a back-to-back perfect forecast before we sounded this ‘warning’.
A break above 0.7050 will set the bullish resurgence in motion. Price is expected to be contained above 0.7000, a break below could lead to more digging. The rally, if genuine, is expected to be very strong and break above this year’s high and then soar to 0.8 region
A break above 0.7050 would have set the bulls in motion but price continued downside below our first bearish target at 0.7. The next bearish target is 0.683-0.685. With price presently some pips above this level, will the bullish move return?. It is at a level like this that price usually makes reversals. While noting this level, what is the present wave count? The chart below shows the reviewed wave analysis of the Kiwi with 0.683-0.685 possible reversal region in mind.
14 March NZDUSD daily Elliott wave analysis: imminent rally?
The wave (c) is an impulse wave projected to be completed at 0.683 price levels. A rally above 0.6952 will be very crucial for the bullish resurgence. The FOMC meeting will be held tomorrow . Many analysts expect no rate hike. The statements that follow this events cause market volatility. The GDP report is also expected from the New Zealand tomorrow. These two events will be very important.
A break below 0.6834 will see the going further downside. A break above 0.695 should be enough for the bulls to return. Stay tuned for more updates.
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