Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
Previous post (1/26): AUD/NZD's Short-term Wave Count
- AUD/NZD in deed had a strong decline to 1.28 as anticipated last time, and the market has consolidated here. Are we done with wave 3 yet? We are probably in another wave up to complete (iv) and then down to complete (v) of 3.
- We can expect the market to extend lower towards 1.2720 after a break below 1.2780, but we might get a correction back towards the 1.2930 area first to complete wave 4. Another wave down could be 5 extending to our target near 1.27.
- The daily chart below shows a a swing at the moment, with a swing projection to 1.2720.
- The decline is testing a fibonacci cluster at 1.28, below which the next cluster is near 1.2630 area. We see that below 1.27, we might get an accelerated move lower. However, watch out for failure to reach the 1.2630 area as 1.2720 provides a strong cluster of support as well in form of rising trendlines, and the SMA 200, and equality swing projection of the previous.
- On the upside, if the market breaks above 1.12950, we might be back in the uptrend after 3-swings down. The target would be 1.32, then 1.35.
Will the AUD/NZD find a bottom soon? We would love to hear from you.
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Fan Yang CMT
Chief Technical Strategist