New Zealand Dollar Rejected Prior to .7900

[B]Commentary:[/B] We wrote last week that Kiwi could test “.7848-.8093 in the next couple of weeks (this is the 100%-161.8% of .7237-.7637/.7452).” The NZDUSD hit .7879 today, which is in the center of our ‘reversal zone?, so a top may be in. As always, only a 5 wave decline would signal with confidence that a top is in. We are watching this pair closely over the next few days - looking for an opportunity to get short. Daily RSI is at 75 and divergent (slightly) with the recent high.

[B]Strategy:[/B] Flat