NZD/USD Reaches 4/12 Uncovered Close

DailyFX

240 Minute Bars

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.
eliottWaves_nzd-usd_body_nzdusd.png, NZD/USD Reaches 4/12 Uncovered Close

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote last week that “the near term NZDUSD pattern has been clean. A flat is either complete or close to complete. Today’s top is right at the 61.8% retracement of the decline from .8675 but I’m not ruling out another run at the uncovered close from 4/12 at .8586 (close to the 78.6% retracement at .8608) along with the final topping in the S&P.” The NZDUSD came within 1 pip of .8586 on Tuesday. The 78.6% retracement at .8608 or even .8630 can’t be dismissed…this is the NZDUSD after all and big turns are often the product of many false starts.

FOREXTrading Strategy: The response at the uncovered close is enough for me to at least start a short position with a stop above .8675…with the understanding that a few days of pain may be required before this plays out.

LEVELS: .8469 .8514 .8541 .8586-.8608 .8630 .8675

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