We shared the following Elliott Wave analysis with our subscribers yesterday morning...we are looking for a sharp push lower...the Reserve Bank of New Zealand said it is hoping for the same in its monetary policy statement today, leaving rates unchanged.
Primary Count [Daily & 240-min View]
NZD/USD Daily [Last 0.7296]
Date/Time: 7-Feb-17/7:45 a.m. ET
Looking for a trend move lower in Wave (a) of E of (A) of larger 5th Wave down…a mouthful indeed. Daily oscillators are turning down after what looks as a spike high (0.7374) and test of the high of Wave B (0.7402). As with Aussie, the New Zealand dollar likes to put in double-tops. First daily swing support comes in at 0.7237.
NZD/USD 240-min: Agreed. It is a bit of a choppy and convoluted pattern; but seems to fit to describe the (A)-(B)-(C) rally from the 0.6859 to 0.7374 to make up larger Wave [D]. Next key swing support is 0.7296…looking for a push lower, then possibly another test of the 0.7374 high in minor Wave [ii]. If this expectations plays out, and the pack is acting “right,” it could give us an opportunity to add to the short side.
Black Swan Capital