Commentary: Kiwi is in the exact same position as the AUSUSD (although the pair has held up a bit better). We wrote Friday that “a wave 2 appears to be nearing completion as price has stalled at the 38.2% of the .7785-.7394 decline at .7543.”
Wave 2 did end at .7555 and the break below .7394 confirms that wave 3 (or c) lower is underway. Weakness should continue until at least.7164 (100% of .7785-.7394/.7555), although we contend that a longer term bear market is underway. See our special report from Friday at NZDUSD Top.
Strategy: Get bearish now, against .7500, target 1 at .6930