NZDUSD is trading lower, unfolding a new five-wave drop out of a triangle correction located at 0.6834 level. We are observing wave 3 that is now trading below the lower Elliott wave channel line and at Fibonacci projection target of 161.8. Some support can be found here, and a new temporary three-wave rally can follow, which can later look for resistance around the 0.6600 area.
NZDUSD, 4h
Now taking a closer look at the intra-day chart of NZDUSD, where we see a nice five-wave bearish development from the highs.
Higher degree wave 3 unfolded three minor legs, and is now unraveling a choppy and slow price movement within wave iv which looks to be a triangle. A triangle is a five-legged correction that moves into the direction of the trend and also unfolds prior to the final wave. That said, once wave iv correction fully shows up,a new drop towards wave v of 3 may follow.
NZDUSD, 1h
