Commentary: We wrote yesterday that “Kiwi’s break above .7738 opens up the possibility that the NZDUSD is in a 3rd wave to much higher levels. This seems odd given that the other dollar pairs suggest at least a small correction prior to the continuation of the weak dollar trend but it is the strucutre that we see as a possible outcome.
If this is the pattern unfolding, then the rally is likely to continue while price remains above .7568.” This was one of the pair we were correct about as the NZDUSD has rallied through .7800. An objective is at the 161.8% extension of .7365-.7738/.7568 at .8172. This outlook is complicated by the bearish pattern in the Aussie. Still, maintain a bullish stance against .7568.
Strategy: Flat