NZD/USD - Nine month long ending diagonal could break soon
Since January Kiwi appears to be in an ending diagonal which is not uncommon for a C wave. This pattern looks like a wedge and consists of 5 waves and it looks like the fifth wave could be complete at 0.7485.
From 0.7485 a 5-wave decline followed to 0.7234 after which 3 waves up were seen which suggests minor wave 1 is complete and wave 2 could be complete. But this 3-wave rally is very small and last friday's decline could be a X wave which would point to a double zigzag and 3 more waves up before a 3th wave down starts. An alternative scenario could be that it breaks down straight away because we have already 3 waves up even though they are relatively small.
Above 0.7485 invalidates all of this.
From 0.7485 a 5-wave decline followed to 0.7234 after which 3 waves up were seen which suggests minor wave 1 is complete and wave 2 could be complete. But this 3-wave rally is very small and last friday's decline could be a X wave which would point to a double zigzag and 3 more waves up before a 3th wave down starts. An alternative scenario could be that it breaks down straight away because we have already 3 waves up even though they are relatively small.
Above 0.7485 invalidates all of this.