Intraday Analysis by Forexsoup

The NZDUSD is in a situation similar to that of the AUDUSD. Unlike the AUDUSD, the NZDUSD completed its 5 waves down in an orthodox manner (rather than in a truncation). Short term resistance is at 7625, 7655, and 7685 but strong downtrend often result in shallow retracements (in other words, be careful not to wait for a rally to short that never materializes). From yesterday – “the decline from the November high unfolded in 5 waves and was succeeded by a sharp 3 wave retracement. Similarly, the decline from 7812 (one degree of trend less) unfolded in 5 waves and then experienced a sharp and deep retracement. A break of 7549 would shift focus to the December low of 7342.”