The Kiwi fell sharply through out last week to complete the bearish correction to 0.7 price region. With this decline, will the bullish run re-surge? We look at this possibility based on 6 March NZDUSD Elliott wave setup.
06 March, AtoZForex – From the last update, we had another perfect forecast. The end of the Flat pattern as the b-wave of an emerging a-b-c correction. It usually occurs that there is a sort of equality between wave a and c when the b wave is a flat pattern or a triangle. The chart below was used in the last update.
We had a bearish projection to 0.7003 as shown above and we recommended thus:
It’s good to wait for a 5-wave bearish reaction (in this case) and sell the 3-wave pullback …the 3-wave rally can get to 50-61.8% Fibonacci retracement of the 5-wave intraday dip shown in the chart above. At the end of the pullback, short opportunity should be hunted as price will most likely dip further to 0.7003. This pattern will be invalid above 0.7248.
It seems price movement is predictable to a good extent after all.
Before the market closed last week, price touched 0.7. At 0.7, there are important Fibonacci ratios clustering. Fibonacci cluster levels are good levels of reversals. It does look like the zigzag correction has completed and the prevailing rally that was halted early February will resume.
6 March NZDUSD Elliott wave setup: bullish advantage?
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. Elliott wave theory is really one of the best technical forecasting tools and one of the most accurate market price reader. We will update you on how this plays out.
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