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NZDUSD Is Approaching The Support-Elliott Wave Analysis

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July 09 2021

Hello traders.
In this article, we will look at New Zealand dollar which is making a very nice retracement as US dollar found support as speculators assume that sooner or later FED will have to fight inflation. However we cannot ignore a very strong bullish trend on New Zealand dollar against the US dollar since March of 2020. We think that this trend is still very strong and valid, therefore we will continue to look higher especially when we have only three-wave move down from a recent top, as shown on a daily chart below where we have projected support at around 0.6790 area. For a potential rally, we will of course patiently be waiting for any intraday impulsive bullish structures to confirm a bullish turn. Patience is key at "do-die" levels.

NZDUSD Daily chart


At the same time, we are also observing Euro against New Zealand dollar where recovery since February is also looking corrective; it's a slow and overlapping move so we think upside can be limited. We also have to consider that despite recent pullback on stocks a highr degree trends are still valid, and in risk-on position so if stocks will again find some buyers, then normally NZD will stabilize as well .At this point, it's also important to mention that Bank of New Zealand (RBNZ) Governor Adrian Orr said two weeks back that economic activity in New Zealand is returning to its pre-COVID-19 level, which sounds very promising for their currency.



Trade well,
GH



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