As we noted on Friday, “Given the counts in the other USD pairs, we do not think that the NZDUSD advance from .7445 is complete but a sizeable correction is probably underway. The rally from .7445 consists of 2 nearly equal waves (a-b-c) and could be wave A of a flat. Bigger picture, the NZDUSD is expected to advance to the 50% of .7921-.7445 at .7683 and perhaps even the 61.8%-78.6% at .7740-.7920. A rally to there would fill the 6/4 gap.” And indeed today the pair has entered the Bollinger Band sell zone and is on the verge of breaking its upward trendline created by past week’s price action. It looks, therefore quite vulnerable to a further move down.
STRATEGY: EXIT