As a new contributor to See It Market, I thought it would be good to focus on some FX setups and analysis out of the gate. That said, AUD/NZD could be interesting from a short perspective here. The chart below highlights why this could offer a compelling risk/reward upon a break lower.
AUD/NZD Wave 4 Setup Chart
That said, there are some considerations to the current setup on AUD/NZD. As you can see, this is a Wave 4 correction and as we know from recent experience, Wave 4’s can unfold in a rather disjointed process and thus it may not be complete.
AUD/NZD Elliott Wave Analysis – Wave 4 Complete?
As well, Wave 4 relative to Wave 2 has unfolded in a pretty basic manner. Using the rule of alternation, Wave 4 is likely to unfold in a more complex manner (i.e. a triangle?). With this in mind, I am not rushing into trades right here. I have added this to my watch list and will wait for the correction to work itself out (and a catalyst to emerge). Thanks for reading.
Follow Dave on Twitter: @aspentrading10
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
