The NZDUSD short-term Elliott Wave view suggests that the Index shows a 5 swing sequence from 8/31 low favoring further upside. The rally from 8/31 low (0.7128) is unfolding as a double three Elliott Wave structure. Up from 0.7128, Minute wave ((w)) ended at 0.7338 and Minute wave ((x)) ended at 91.71. Wave ((y)) is currently in progress and the subdivision is also unfolding as a double three Elliott wave structure. Minutte wave (w) of ((y)) ended at 0.7344 and Minutte wave (x) of ((y)) ended at 0.7246. In the near-term, while pullbacks stay above 0.718, expect the pair to extend higher. We don’t like selling the pair.

NZDUSD 1 Hour Elliott Wave Chart

(Click on image to enlarge)

Double three ( 7 swings) is the most important pattern in Elliott wave’s new theory. It is also probably the most common pattern in the market these days. Double three is also known as a 7-swing structure. It is a very reliable pattern that gives traders a good opportunity to trade with a well-defined level of risk and target areas. The image below shows what Elliott Wave Double Three looks like. It has labels (W), (X), (Y) and an internal structure of 3-3-3. This means that all 3 legs have corrective sequences. Each (W) and (Y) is formed by 3 wave oscillations and has a structure of A, B, C or W, X, Y of smaller degrees.