Tuesday, June 24, 2014
Elliott wave analysis of NZD/USD - Wave (ii) ended at 0.8749
Wave (ii) corrected 92% of wave (i). Under the Elliott Wave Principle wave two is allowed to correct all of wave one, but can never ever break the origin of wave one.
During the last part of the wave (ii) rally we have seen the reliable 3 wave push to a top pattern, which indicates a top is in place and that we soon should see a break below support at 0.8675 and more importantly a break below 0.8636 confirming the top for a new decline to 0.8399 and lower towards at least 0.8136 in wave (iii).
Remember the 3 push to a top pattern has to be followed by three lower tops on the indicator, which also is the case here.