NZD/USD Wipes Out Last Week’s Gains

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eliottWaves_nzd-usd_body_nzdusd.png, NZD/USD Wipes Out Last Week’s Gains

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote last week that it’s important to keep an eye on corrective channel resistance going forward. That level crosses the upper .8500s over the next few weeks. The August 31, 2011 high is at .8571. .8675 is the 88.7% (little known Fibonacci level). The channel was reached last week and Thursday’s high was the 88.7% level to the pip. Momentum is clearly strong but expect a reaction from here before renewed buying interest. Support is .8578-.8600.” The NZDUSD reacted alright and fell through .8578 without a problem. The decline has so far stopped just shy of the 61.8% retracement of the rally from the March low, at .8358. .8350/60 is defined by the September 2012 high, 3/6 high and series of lows throughout late March and early April. The level should provide support.

FOREXTrading Strategy: Flat

LEVELS: .8170 .8279 .8363 .8442 .8512 .8546

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