but the price action in wave C within wave Y suggest that we are in
a double three or triple three sideways movment.
THERE IS 3 POSSIBILITIES:
1. (YELLOW) suggests lower degree wave (y) is completed
and it's possible that we are in a wave ( xx ), which would give
us another a-b-c down move before completing wave (Y).
Wave ( xx ) must not move 50% above wave (y),
so below .8370 this view is vaild.
2. (RED) suggests higher degree wave (Y) is completed,
but that we are doing a wave ( XX ) of higher degree,
which should give us a-b-c down move in wave (Z) before higher.
As mentioned, wave ( XX ) can't move 50% above
wave (Y), so this view is vaild below .8440.
3. (GREEN) suggests higher degree wave (Y) is completed
and the market have completed a double three and the market
should retrace the down move from the .8550 high.
The maximum retrecment of wave Y(or y) is 150%, so the market may not
reach mentioned levels in wave XX (or xx ), but as below those level,
there is room for more downside.
So the outlined levels are NOT targets.
A more in dept count: https://www.dropbox.com/s/drp0i46eh4ev9gp/nzdusd.png
HOW DO WE TRADE THIS?
I will look for the weekly for signals to go long
and daily for signals to go short.
HAPPY NEW YEAR AND GOOD LUCK!