Commentary: Yesterday, we wrote that “unless the Kiwi rally is ending as a truncated 5th, we expect price to exceed .7738 soon and probably .7785 before a deeper correction unfolds.”
Well, the rally did end as a truncated 5th wave, which indicates a weak structure. Expect a deep retracement of the .6639-.7738 rally, potentially to the 61.8% at .7092, but to at least .7365.
Strategy: Bearish on break of .7568, against .7738, target TBD