Elliott Wave View: further downside in GBPNZD [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

GBPNZD broke below 3.19.2020 low (1.9899) creating an incomplete bearish sequence from 3.9.2020 high (2.182). Short term Elliott Wave View suggests the decline from 4.1.2020 high is unfolding as a 5 wavesimpulse Elliott Wave structure. Down from 4.1.2020 high, wave 1 ended at 2.01396 and wave 2 bounce ended at 2.0478. Internal of wave 2 unfolded as an Expanded Flat Elliott Wave structure. Wave ((a)) ended at 2.035, wave ((b)) ended at 2.011, and wave ((c)) of 2 finished at 2.0478.

Wave 3 is currently in progress and subdivides into another impulse in lesser degree. Down from 2.0478, wave ((i)) ended at 2.031 and wave ((ii)) bounce ended at 2.0471. Pair then resumed lower in wave ((iii)) towards 2.0057 and wave ((iv)) bounce ended at 2.0192. GBPNZD can see 1 more leg lower in the short term to end wave ((v)) of 3, then it should bounce in wave 4 before the decline resumes. Pair has potential target of 100 – 123.6% Fibonacci extension from 3.9.2020 high which comes at 1.868 – 1.913. Near term bounce should find sellers in the sequence of 3, 7, or 11 swing for more downside.

GBPNZD 45 Minutes Elliott Wave Chart

GBPNZD Elliott Wave Video

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.