New Zealand Dollar Bounces but .7403 is Key

Commentary: We maintain that a C wave lower is also unfolding from .7403 in Kiwi. Wave C would equal wave A at .7161. .7314 is short term resistance but the bearish structure remains intact below as long as price is below .7403.

In the 5 wave rally from.6719 to .7491, the 5th wave is extended. 5th wave extensions are sometimes fully retraced so there is the possibility that Kiwi does not find solid support until .7082 (close to the 50% of .6719-.7491). Strategy: Bearish against .7403 targeting .7161 and .7082.