The USD is higher across the board but these moves may not be mean much till the Fed later today. The market can be slow till their policy decisions when they may finally come out with tapering, but the key is for how much, probably not a lot, which means that despite some dollar recovery, the buck may again hit resistance. If that's going to be the case then we think that commodity currencies can stay strong.
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I still believe that NZD can do well in upcoming sessions, especially after New Zealand unemployment fell 0.5%, down to 3.4%. From an Elliott wave perspective, we see a nice three-wave set-back from the highs, ideally, it's a correction that can cause a new bounce by the end of the week.
NZDUSD made a strong recovery in the 4-hour chart, an impulsive move after we noticed a completion of a big and complex W-X-Y corrective decline at 0.6854. Therefore, seems like a new five-wave bullish cycle is now in progress that can send the price even higher once the current corrective consolidation within wave 4 fully unfolds. Ideal support is here around 0.7100 level.
NZDUSD 4h Elliott Wave Analysis
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