I wrote last week that “there is a count in the NZDUSD that calls for a wave 2 high to form before .6090. If this is to occur, then a high should form within the next few days. Short term structure favors a push above .5753 in order to complete wave c of an expanded flat.” Kiwi is 200 pips off of the high and price has broken below a short term support line. Bears can move risk to .58 (last week’s high) and short term resistance is at .5670-.5715. Bolstering the bearish case is the short term head and shoulders formation and price ideally remains below .5740.
