In below article we will describe AUD/NZD chart (on different TFs) using Elliott Wave Theory – you can read about waves and the whole strategy here.

AUD/NZD

2015-11-18_2010071[pullquote align=”left” cite=”” link=”” color=”” class=”” size=””]Get 25USD for free and try Elliott Wave Strategy![/pullquote] If we take a closer look at AUD/NZD chart (weekly) we may see an ended downward impulse, which started in 2011. Inside that move there were five important waves of lower grade, where the first and the fifth ones have the same length. AO oscillator shows a divergence at 3rd and 5th wave – it looks like an ideal pattern of impulse wave. If it is true, then upward movement should be a beginning of stronger bullish trend.

Such move may rebound inside the 2B wave and may become a simple correction – which indicates that we have finished AB wave and wait for C wave, which should be initiated in the last week. It should, but do not have to. It is likely, that move to the 1.0550 will be just the b-wave of the B wave and we will see another decline below the low (less likely scenario) inside the c-wave of wave B.

2015-11-18_2010072Looking at clean chart we may see a head and shoulders pattern forming, which ideally draw itself inside wave scenario described above.

2015-11-18_201007No matter what strategy we use – waves or classical analysis – the pair is worth observing. If you still do not have long position, then the next opportunity should be after forming of C wave. Now we are leaving important resistance zone and re-test from the top will be occasion for going long.

Declines below 1.00 may negate above scenario.

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Peter started his trading career in 2000. He spent first six years trading futures and created a system giving a 25% yearly return with limited risk. Since 2006 connected with foreign exchange market, where he trades using trend lines and breakouts, but spends the most of his time on Elliott Wave Theory. Here in Comparic, writes about Price Action and Waves in daily trading.