In this post, we’ll review the long-term perspective for the NZDUSD cross. From a technical standpoint, we can expect the price action to drive the kiwi to fresh lows, even below the psychologic 0.60 level.
The Big Picture
The oceanic cross is developing a bearish corrective sequence as a zigzag structure. The downward move started on July 2014 when the kiwi found sellers at 0.88361. In the following chart, we observe that the BC segment is incomplete. According to the Elliott Wave Theory, BC sequence must be a five waves structure (read more.)
In the daily timeframe, we observe the BC segment sequence as an incomplete bearish wave. The kiwi is developing a fifth wave of the Intermediate degree. Our scenario for the kiwi, long-term, is for more drops, which can extend loses even below the psychologic level 0.60. The forecasted bearish target is between 0.58803 to 0.56719. Once the NZDUSD cross reaches the target area, the price should make a connector which should drive to visit fresh highs. Invalidation level is above 0.69786.
Remember that the price is not constrained to move as our outlines imply. The charts issued corresponds to the Elliott Wave Theory application.