By Orbex
NZDUSD has seen the formation of an intervening wave x of a cycle degree. Wave x is a double zigzag consisting of primary sub-waves, the last part of which is an intermediate double zigzag (W)-(X)-(Y).
After impulse wave (1) ended, the market began to decline in a shallow correction (2). The intermediate wave (2) can end near the target level of 0.703.
At that level, the entire wave (2) will be at 38.2% of impulse (1). Prices could rise above the previous maximum of 0.731, at the primary wave Ⓧ.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
An alternative scenario indicates that the interventing wave x of the cycle degree may not be complete yet. According to this view, the last part of this wave is still under development. It consists of intermediate sub-waves (W)-(X)-(Y), where wave (X) was recently formed.
The wave (X), by its structure, is a simple flat. After the full completion of this flat, the market began to move down in a new bearish wave (Y).
In this case, the previous minimum shown by the minor wave X determines the target.
Thus, in the coming trading weeks, we may see the market decline below the level of 0.680, as indicated on the chart.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
- COT Metals Charts: Speculator bets led by Gold & Steel May 4, 2024
- COT Bonds Charts: Speculator bets led lower by SOFR 3M & 10-Year Bonds May 4, 2024
- COT Soft Commodities Charts: Speculator bets led by Wheat, Soybean Meal & Corn May 4, 2024
- COT Stock Market Charts: Speculator bets led lower by S&P500 & MSCI EAFE May 4, 2024
- The British index has updated the historical maximum. Oil lost 5% over the week May 3, 2024
- US Fed tilts towards a rate cut despite the postponement. HKMA left the rate unchanged at 5.75% May 2, 2024
- Brent crude oil hits seven-week low May 2, 2024
- Target Thursdays: USDJPY, Copper & EURCAD May 2, 2024
- WTI oil declines on rising inventories and negotiations between Israel and Hamas. Rising unemployment in New Zealand may force RBNZ to start cutting rates earlier May 1, 2024
- Bitcoin stumbles below $60k ahead of Fed May 1, 2024