Jamie's Pick: 08/08/12
The swings since the 2011 high compose a triangle. The NZDUSD pattern makes it more likely though that the triangle is not bullish but rather forming from the October 2011 low as wave B within an A-B-C decline from the 2011 high. A top may be in place today although exceeding 10603 would shift focus towards trendline resistance just shy of 10700. The next leg of the triangle should bring price back below parity. I’ve highlighted RSI in order to show the inability of the indicator to extend above 70. This is often a warning sign. Information is sufficient at the current juncture to warrant a bearish bias against Tuesday’s high with 10330/50 as an initial bearish objective.
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