NZDUSD Reverses Lower as Kiwi Breaks Key Trendline Support

Kiwi is reversing quite aggressively to the downside, and notice that price on the 4 hour time frame is currently breaking the trend line support connected from the April lows, so it appears that the three wave recovery is already finished, completed D wave, exactly at our first resistance near the 0.5960 level. The reversal lower that we are tracking now looks like a wave E decline, but we know that wave E should unfold in a minimum of three waves, so it’s very possible that this weakness continues much lower towards the 61.8 percent or even the 78.6 percent retracement levels, located around 0.5750 - 0.58. Those are the next major supports to watch for a potential rebound, but only after we complete a three wave decline from the recent swing highs.

So for now, it still looks like we are only in the first leg of the current selloff.

If you wish to receive daily updates like this - check out our bloghttps://wavetraders.com/blog/