Elliotwave Analysis & Forecast - NZDUSD - D1 - 3rd August, 2022
If we look at above chart, prices are going down in blue wave c of red wave Z of green wave D. As we are considering that triangle is forming in long term and 3 out of 6 legs has been formed (green wave ABC) and currently fourth leg is unfolding. Green wave B was formed on March 2020 by placing low of 0.5470 and this green wave B was composed of red wave ABC. On completion of green wave B, we saw an impulsive rally in green wave C towards 0.7467 which completed its formation on February 2021.
Now the prices are moving on in green wave D and this leg is forming in the shape of triple zigzag red WXYXZ and I think last leg is forming in Red Z. and the ideal target for green wave D is near 0.6 area where we will expect a new bottom before an impulsive rally will be started toward 0.80 or even above.
Trade Recommendation:
A short position can be taken near 0.63 area by placing a stop just above few pip of previous high near 0.6360 will give us good risk-reward ratio. the Target will be 0.600 area.
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