NZD/USD ✈️ Bearish Momentum of Wave 4 is Around the Corner ?

3 min read
Adarwish

adarwish

Author

Hi traders,

NZD/USD developed a bearish momentum during the last 5 weeks… It seems that this price action was developing a bearish wave 3 pattern and I think that the correction of bearish wave 4 is around the corner.

We will review different scenarios as the pair can either bounce for bullish wave 4 or expand the bullish momentum of wave 3.

This article will discuss the wave perceptive and expected scenarios for the pair during the coming days using wave pattern, support, and resistance and SWAT software.

NZD/JPY Reached 161.8% Fibonacci expansion

The below chart shows that the pair developed a bearish 12345 wave pattern … In my view, the pair is in wave 3 pattern and now we are waiting for the correction of wave 4 to take place as the price reached 161.8% Fibonacci expansion level which is a key level and bouncing from that level will confirm wave 4 start and a break will invalidate thus pattern.

For the moment I expect the correction of wave 4 to take place… Traders need to wait for the confirmations of wave 4 before trading this pair… In the next paragraph, we will discuss this development by using SWAT software.

NZD/USD SWAT Chart

Now it’s time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… SWAT Chart shows bearish momentum but some developments to confirm the setup… Here are the main developments to consider:

  1. Need price to break 21 EMA with a good bullish blue candle.
  2. Also, need price to break the wizz level 2.
  3. Our target is the Wizz level 3 and 4.

I advise traders always to protect their profit or use trailing stops.
So in my view, traders should wait for the confirmation before trading this pair and look for long opportunities only as it matches the expected wave.

Good trading,

Ahmed
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