Aleksandar Vichev
EWM Interactive
On July 10th 2014 NZD USD hit 0.8833. Today, September 29th, the exchange rate touched 0.7704. Could this 1100-pip move be predicted?
Yes, it could and it was. It was June 30th 2014, when we published “NZDUSD approaching a major resistance”. The next chart shows how NZD USD looked like on that day.
As you can see, we were expecting a reversal to the downside from the top of the presumed ending diagonal. According to the Elliott Wave Principle, ending diagonals are usually followed by a “swift and sharp” reversal. As the following chart demonstrates, this is exactly what happened to NZD USD.
However, a little relabeling is needed, because it seems that prices are still forming the corrective wave (X). If this is the correct count, we should expect more weakness from NZD USD, because wave C of (X) is supposed to take prices below the bottom of wave A. In other words, 0.7350 should be reached before we start looking for a bottom.
Trading financial instruments entails a great degree of uncertainty and a variety of risks. EMW Interactive’s materials and market analysis are provided for educational purposes only. As such, their main purpose is to illustrate how the Elliott Wave Principle can be applied to predict movements in the financial markets. As a perfectly accurate method for technical analysis does not exist, the Elliott Wave Principle is also not flawless. As a result, the company does not take any responsibility for the potential losses our end-user might incur. Simply, any decision to trade or invest, based on the information from this website, is at your own risk.
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