Commentary: Contiuing with our theme that the AUD and NZD may have diverged, we maintain that NZDUSD is about to drop below .7435 to complete a large C wave. The decline from .7937 to .7507 is a 5 wave decline and is either wave 1 down in a 5 wave bear cycle or wave A down in a 3 wave bear cycle (either way…a drop below .7507 is expected). The rally to .7791 is best counted as a 3 wave advance and the 61.8% retrace of .7937-.7507 has held twice.
Strategy: Bearish, from .7791, target below .7435
Al Bawaba
