Tuesday, July 26, 2016

NZD/USD - Expect higher levels before a new deep plunge

The Kiwi got clobbered last week after completing wave 4 at 73.25. so 73.25 should hold.
Minor wave 1 ended at 69.50 so we are now correcting in a wave 2. The sharp Elliot Wave counter has probably already counted 3 waves up but personally I think that this is just wave A (of wave B) considering the small distance in price it covered relative to wave 1. So a flat pattern is a possibility and a deep wave B would confirm this.

So we are now in a B-wave followed by a C-wave to complete minor wave 2. After that Kiwi should plunge again.

In case wave 2 already has finished at 70.26  I will wait for smaller degree wave 1 and wave 2 (of wave 3) to complete and will from there add on to my short position.