Likewise, a new high is likely in the NZDUSD this week. Wave structure along with the RSI condition explained in the AUDUSD analysis suggests as much. I wrote yesterday that “the drop from .6132 is a 4th wave that should find support near .5890-.5930. This zone is defined by the price extreme of the 4th wave of one less degree (Elliott guideline) and the 38.2% retracement of the rally from .5624 (a 3rd wave rally).” The Kiwi found support in the center of this zone so expect a new high soon. In the above count, I am treating wave 1 as a leading diagonal. Watch the Elliott channel for resistance on a break to a new high. Like the AUDUSD, I anticipate a short opportunity soon.
