Thu. Jan 27th, 2022


What will EURUSD, USDJPY and USDCAD bring next week? This is the subject of the debate in our next premium analysis win on Sunday!

GBPNZD surpassed 2.0270 in mid-August, but the bulls were unable to maintain the positive momentum. A month later, the pair fell to 1.9055, losing 6% in the process. And just when it looked like the bears had firm control, the pound began to rise against the kiwi.

Last week it hit 1.9729 despite the expanding COVID-19 cases in the UK and halted negotiations on Brexit. To try to make sense of GBPNZD’s behavior, let’s take a look at it from a different point of view. The following graph shows the last two months in the perspective of Elliott Wave.

GBPNZD draws the Elliott Wave bass cycle

The hourly chart of the pair reveals that the decline between 2.0271 and 1.9055 is a clear five-wave boost. The pattern is labeled (1) – (2) – (3) – (4) – (5), where the five sub waves of wave (1) are also visible.

According to the theory, a three-wave correction in the other direction follows each impulse. In GBPNZD, we see a simple zigzag recoil (a) – (b) – (c), where the wave (b) appears to be a triangle. This means that now the couple has drawn one complete the 5-3 wave cycle to the bottom.

If this count is correct, we can expect the downward trend to resume from here. The targets below the bottom of the wave (5) are plausible, which opens the door a slide up to sub-1.9000 in the coming weeks. Even if it turns out that the corrective phase of the cycle is not over yet, the odds remain in favor of the bears as long as GBPNZD trades below 2.0271.

What will EURUSD, USDJPY and USDCAD bring next week? This is the subject of the debate in our next premium analysis win on Sunday!

BREXIT CORONAVIRUS CURRENCIES WAVE PRINCIPLE ELLIOTT ELLIOTT WAVE THEORY FOREIGN EXCHANGE RATES FOREX TRADE FOREX TRADING STRATEGIES FOREX GBPNZD TECHNICAL ANALYSIS TRADE



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