Jamie's Pick: 05/09/11
I am extremely bearish the NZDUSD at this level. Divergence at the recent top combined with an impulsive decline (5 waves) and corrective advance (3 waves) gives scope to a sharp drop in either a 3rd or C wave. Objectives are the 100% extension at 7666 (also 100 day SMA) and 2/18 high) and the 7500 area – which is defined by the 61.8% retracement of the rally from 7114, 161.8% extension of the decline from the top and 200 day MA. The near term head and shoulders pattern bolsters the bearish view.
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