NZD/USD Beginning Reversal ‘Process’

DailyFX

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eliottWaves_nzd-usd_body_nzdusd.png, NZD/USD Beginning Reversal ‘Process’

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

FOREXAnalysis: I wrote last update that “Based on the drastic divergence between the NZDUSD and AUDUSD, a top is probably near in NZDUSD. Momentum on this advance is pathetic as well; the NZDUSD is at its highest level since September 2011and daily RSI isn’t even above 60! Volatility has tightened drastically as well. A sharp reversal is probably nearby but we need a setup such as an outside day, inside day, key reversal, or break of support (8280 at this point) to trigger a position. Until then, shorts are at risk of at least 8570.” An outside day reversal unfolded on Friday…the setup is there to be bearish against Friday’s high. Exceeding that level opens up 8570 again.

FOREXTrading Strategy: Short against 8540. Tighten the stop on a drop below 8403.

LEVELS: 8333 8394 8435 8571 8621 8674

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