New Zealand Dollar Thrust Higher Would Face Reversal Risk
Prepared by Jamie Saettele, CMT
Like the AUDUSD, the NZDUSD has traded in a corrective manner for most of February. Specifically, the pattern is probably a 4th wave and the upside is favored in wave 5. A thrust higher may give way to a reversal (complete wave 5 of C) as per structure from the 2011 high (leading diagonal?). Levels of interest include the 78.6% retracement of the decline from the 2011 high at 8527 and 8/31/11 high at 8572.
Bottom Line – Higher / Topping
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.