NZDUSD Elliott Wave Analysis – Trading Lounge Daily Chart
New Zealand Dollar / U.S. Dollar (NZDUSD) – Daily Chart
NZDUSD Elliott Wave Technical Analysis
FUNCTION: Counter Trend
MODE: Corrective
STRUCTURE: Orange Wave 2
POSITION: Navy Blue Wave 1
DIRECTION NEXT HIGHER DEGREES: Orange Wave 3
DETAILS:
Orange Wave 1 has likely completed, and Orange Wave 2 is currently in progress.
Based on the daily chart, NZDUSD is undergoing a counter-trend correction within a larger bearish wave structure—identified as Navy Blue Wave 1. The corrective Orange Wave 2 is unfolding as an upside retracement inside this broader downtrend.
This market phase typically signals a temporary halt before resuming the main bearish trend. Technical indicators suggest that a continuation toward Orange Wave 3 could emerge, provided resistance levels are not broken.
The ongoing correction within Orange Wave 2 is expected to be volatile with limited bullish potential. Traders should monitor closely for signs that this wave is ending, as this would trigger the start of the next major downside—Orange Wave 3. This stage offers short-term trade setups in line with the prevailing bearish market context.
Traders are advised to remain cautious and focus on wave structure clarity. The upward movement is part of a corrective pattern—not a trend reversal. Effective risk management is essential, as the completion of this correction could mark the market’s return to its primary downward trend.
New Zealand Dollar / U.S. Dollar (NZDUSD) – 4-Hour Chart
NZDUSD Elliott Wave Technical Analysis
FUNCTION: Counter Trend
MODE: Impulsive as C
STRUCTURE: Gray Wave C
POSITION: Orange Wave 2
DIRECTION NEXT HIGHER DEGREES: Orange Wave 3
DETAILS:
Gray Wave B seems to have ended, with Gray Wave C of Orange Wave 2 now forming.
The 4-hour chart shows NZDUSD in a counter-trend formation, with Gray Wave C progressing impulsively as part of the corrective Orange Wave 2. This move follows the completion of Gray Wave B, which capped the previous retracement.
The impulsive behavior of Gray Wave C suggests active selling pressure, though it still fits within a correction rather than establishing a fresh downtrend. This pattern contributes to the broader analysis pointing to the upcoming Orange Wave 3 rally.
Further downside is expected short-term as Gray Wave C evolves, but this weakness should stay within corrective limits. Spotting the conclusion of Wave C will be key to preparing for a bullish move into Orange Wave 3. This setup offers a strategic view of reversal possibilities and trade management within the current wave cycle.
This Elliott Wave outlook offers clear guidance on the current market dip and its corrective context. Traders should remain vigilant for signals confirming Wave C’s completion and the likely transition toward a renewed bullish impulse.
Technical Analyst: Malik Awais
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