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NZDUSD Elliott Wave Analysis Trading Lounge 4 Hour Chart, 12 January 24

New Zealand Dollar/U.S.Dollar (NZDUSD) 4 Hour Chart

NZDUSD Elliott Wave Technical Analysis

Function: Trend

Mode: Corrective as wave 4  

Structure: blue wave 4 of 1

Position: Red wave 3

Direction Next Higher Degrees: Blue wave 5 of 1

Details; blue wave 4 of black wave 1 is in play, after that 5 of 1 will start. Wave Cancel invalid level: 0.60553

The "NZDUSD Elliott Wave Analysis Trading Lounge 4 Hour Chart" for 12 January 24, provides a detailed examination of the New Zealand Dollar/U.S. Dollar (NZDUSD) currency pair using Elliott Wave analysis. This analysis is crucial for traders seeking insights into potential price movements and trend developments in a 4-hour timeframe.

The identified "Function" is described as "Trend," indicating a focus on understanding and evaluating the prevailing trend in the market. This suggests that the analysis aims to position current price movements within the broader trend context, aiding traders in making informed decisions aligned with the market trend.

The specified "Mode" is labeled as "Corrective as wave 4," signaling that the market is currently undergoing a corrective phase within the broader Elliott Wave count. Corrective waves are typically characterized by sideways or counter-trend movements and play a vital role in resetting the market for the next impulsive move.

The primary "Structure" is defined as "blue wave 4 of 1," indicating that the market is currently within the fourth corrective wave of the larger Elliott Wave count of wave 1. Recognizing the specific structure of the current wave is essential for traders to anticipate potential price dynamics and reversals.

The identified "Position" is labeled as "Red Wave 3," providing insights into the current position of the market within the broader Elliott Wave sequence. In this case, the market is in the third impulsive wave (labeled as Red Wave 3), indicating a strong directional move within the ongoing Elliott Wave count.

In terms of "Direction Next Higher Degrees," the analysis points to the anticipated "Blue wave 5 of 1." This implies that after the completion of the current corrective phase (blue wave 4 of 1), the next impulsive wave, labeled as Blue wave 5 of 1, is expected. Understanding the expected direction of the next wave is crucial for traders to position themselves accordingly.

The "Details" section notes that "blue wave 4 of black wave 1" is currently in play, suggesting that the corrective phase is ongoing. After the completion of this corrective wave, the analysis anticipates the start of "5 of 1," signifying the beginning of the next impulsive move.

The "Wave Cancel invalid level" is identified as "0.60553." This level serves as a critical reference point, and if reached, it would invalidate the current wave count. Traders may need to reassess their analysis if the market reaches this level.

In summary, the NZDUSD Elliott Wave Analysis for the 4-hour chart on 12 January 24, suggests that the market is currently in a corrective phase (blue wave 4 of 1). The completion of this correction is anticipated to be followed by the start of the next impulsive move (Blue wave 5 of 1). Traders are advised to monitor the progression of the corrective wave and consider the invalidation level at 0.60553.

Technical Analyst: Malik Awais

Source: Tradinglounge.com

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