The NZDUSD outlook in the larger time cycles is starting to look very constructive. It has managed to break out of its daily downside Channel. In the short term however, there is a clear wave count and setup in the pair for a quick scalp at the week's open.
Here is the 1 min chart Wave count
As per the chart, it has already finished an ABC correction down, and technically there is no need for further downside. However, as the EURUSD and most other pairs are calling from some USD strength, and it is very common to see double corrective structures, the bottom has been marked as a (w) calling for one more ABC structure down.
Just to be sure it is going to the second leg, I've put a stop order 1 pip below the (w) to try and catch a second leg if it comes. Conservative targets would come in at 6550.
Here is the 1 min chart Wave count
As per the chart, it has already finished an ABC correction down, and technically there is no need for further downside. However, as the EURUSD and most other pairs are calling from some USD strength, and it is very common to see double corrective structures, the bottom has been marked as a (w) calling for one more ABC structure down.
Just to be sure it is going to the second leg, I've put a stop order 1 pip below the (w) to try and catch a second leg if it comes. Conservative targets would come in at 6550.
