Forex Signals

NZDUSD Develops a Three Descending Peaks Pattern


The NZDUSD prices develop an incomplete corrective formation that suggests a new decline, which could complete a three-wave movement in the following trading sessions.

In its 4-hour chart, the kiwi illustrates a bearish move that the price started when topped at 0.67978, starting a corrective structure that remains in progress. The figure highlights the completion of waves A and B labeled in green. According to the Elliott wave theory, the NZDUSD pair should start to develop a downward wave C subdivided into five waves from its corrective sequence. In this context, the price could drop at least at 0.65165, which corresponds to the September 24th low.


On the other hand, from the chartist perspective, the last decline looks like a three descending peaks pattern, which suggests the continuation of the primary bearish move supporting the scenario of further falls.

The bearish scenario’s invalidation level locates above 0.6670, which coincides with the surpassing of the short-term bearish trendline identified in brown.


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By Eduardo Vargas

Eduardo Vargas is a technical analyst and independent trader based in Buenos Aires, Argentina. He is an Industrial Engineer and holds a Master in Finance degree. In 2008 began to trade Chilean stocks listed on IPSA. From 2013 started to trade CFDs on Forex, Commodities, Indices and ETFs markets. He analyses different markets combining the Elliott Wave analysis with Fibonacci tools. He provides a market mid-long-term vision.

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