Tuesday, June 24, 2014

Elliott wave analysis of NZD/USD - Wave (ii) ended at 0.8749

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.

4 comments:

  1. Hi EWS, we just broke above the top of wave (i), what would be the next probable count?
    Thanks,
    HaiGo

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    Replies
    1. Hi HaiGo,

      Sorry for the late answer.

      The rally above hasn't change the count drastically, but it does allow for a move closer to 0.88 as long as support at 0.8722 protects the downside, but a break below 0.8722 will be the first good indication of a top being in place.

      Kind regards
      EWS

      Delete
  2. hi, 0.8749 marks the 92% correction of wave i, at what price would mark the 100% correction? thanks

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