close icon

AUDNZD’s Bull Party is About to Get Louder

AUDNZD was trading around 1.0460 on June 29th, when we published “AUDNZD to Throw a Surprise Bull Party”(see original article), where we shared our opinion, that, based on Elliott Wave analysis, we thought the pair is suitable for long-term buys, as long as 1.0019 was safe. Currently, AUDNZD is trading around 1.0650, after climbing as high as 1.0763. So far, so good. However, we cannot neglect the fact that there was a decline to 1.0236 in the middle of September, so it is necessary to examine the situation once again, just to make sure that the bullish scenario is still in play.
As the daily chart shows, there is a clear five-wave impulse to the north from 1.0019 to 1.1428, marked as wave (A). According to the Elliott Wave Principle, every impulse is followed by a correction in three waves in the opposite direction. And here comes the question about the exact type of this correction. In June, we though that wave (B) was going to develop as a W-X-Y double zig-zag. Instead, the market chose to turn it into an A-B-C flat correction. In order to do that, it had to extend the three-wave (a)-(b)-(c) simple zig-zag in wave Y into a five-wave sequence, labeled (1)-(2)-(3)-(4)-(5) in wave C. So, does this change the overall outlook? Nope. Not at all. The invalidation level at 1.0019 is still intact, the 5-3 wave cycle is still pointing north, so all we have to do is stick with the bulls and wait for the situation to develop. From now on, targets above 1.1430 remain plausible. In addition, 1.0236 is the new key level, which is not supposed to be threatened, since wave (2) of C cannot decline below the starting point of wave (1). As long as it holds, big gains in AUDNZD could be anticipated.

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

USDTRY Drop Accelerates as Elliott Wave Predicted

The Turkish Lira hit its highest level against the U.S. dollar in six months. The country economic and legal reforms announced last year coupled with tighter monetary policy appear to be giving the desired effect. USDTRY is down 19.3% from its November 2020 high after being in an uptrend since mid-2008. Most analyst, however, are…

Read More »

EURUSD Surges 570 Pips After Fibonacci Encounter

EURUSD is trading at levels last seen in April 2018, when it was on its way down to 1.0636 by March 2020. The pair is now approaching 1.2200, up 14.5% since the COVID-19 selloff nine months ago. But trends don’t move in a straight line. Two months ago, we showed you how Elliott Wave analysis…

Read More »

USDTRY Heads South After Central Bank Decision

Turkey finally took a decisive step towards taming the double-digit inflation, which has been destroying the Lira’s value for years. The country’s central bank lifted the benchmark interest rate to 15%, up 475 basis points from its previous standing. USDTRY fell as low as 7.5031 earlier today, on track for a second consecutive week of…

Read More »

GBPNZD Can Slide to Sub-1.9000 In Coming Weeks

What will EURUSD, USDJPY and USDCAD bring next week? That is the subject of discussion in our next premium analyses due out on Sunday! GBPNZD exceeded 2.0270 in mid-August, but the bulls could not keep the positive momentum. A month later, the pair fell to 1.9055, losing 6% in the process. And just when it…

Read More »

Ahead of EURUSD ‘s 280-pip Drop in September

EURUSD had been on a tear since mid-March when it bottomed out at 1.0636. Nearly six months later, on the first day of September, the pair exceeded the 1.2000 mark. The bulls seemed firmly in control and the Fed’s money printing suggested further losses ahead for the dollar. However, years of experience had taught us…

Read More »

Ahead of GBPUSD in Both Directions. Now What?

GBPUSD had a good run over the past six months, climbing from its 1.1412 March low to as high as 1.3483 last week. The pair is now back below 1.3000 after the latest portion of Brexit-related mess. Later in this article we will share our view of where the Pound is headed against the dollar,…

Read More »

USDTRY Set to Complete 12-Year Impulse Pattern

The U.S. dollar has been steadily climbing against the Turkish lira since 2008. Ten years later, in 2018, USDTRY reached 7.1500 on the back of geopolitical tensions and President Erdogan‘s reckless political decisions. In May 2019, however, the pair was down to 6.0600 and it looked like the Lira’s plunge might be finally over. Unfortunately,…

Read More »

More analyses