Elliott wave analysis of AUD/NZD - Short term count.

 

AUD/NZD

My preferred count is that we saw an important low at 1.0488. From the 1.0488 low we have seen the first impulsive rally in wave 1 from 1.0488 to 1.0946 and wave 2 likely ended with a deep retracement of wave 1 at 1.0519. Wave 2 is overlapping and does not appear impulsive in my view. However, to confirm that wave 2 is over we need a break above 1.0685 and more importantly a break above resistance at 1.0759, which should call for a powerful rally in wave 3 towards at least 1.1270.

Only a break below the former low at 1.0488 will invalidate my bullish count and indicate that we only saw wave 4 at 1.0946 and the final wave 5 is developing.