NZD/USD Holds above Lows; Forming Divergence with AUD/USD
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Divergence with the AUDUSD (NZDUSD did NOT make a new low while the AUDUSD did) is suggestive of a low in its own right. “The 5/23 reversal unfolded after a washout of sorts below the November 2012 low of .8052. Tuesday was flat after last week’s doji. The sideways trade is consistent with a 4th wave, although the structure of the 4th wave is in question.” A triangle is possible between the 5/23 low and high (.8005 and .8170). If this is the case, then the range will tighten for the next few days before a final low is registered, which sets up well for an early June reversal.
FOREXTrading Strategy: Flat
LEVELS: .7914 .8005 .8049 .8126 .8170 .8212
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