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A Disappointing Week Ahead For NZDUSD?

NZDUSD rose from 0.6235 to 0.6896. A 660-pip recovery in a little over three weeks could easily convince the majority of traders, that it is time to go long on this pair. However, a closer look at the charts might lead us to a different conclusion.
nzdusd 17.10.15
As the 4-hour chart of NZDUSD clearly shows, the recent advance has an impulsive structure. According to the Elliott Wave Principle, a pull-back of at least three waves should be expected after every impulsive sequence. In other words, NZDUSD is likely to stay bearish for a while. The bottom of wave (4) near 0.6620 seems like a good first target to the downside. So, in our opinion, buying NZDUSD now is the exact opposite to the right decision.



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