NZDUSD is currently trying to rise after a sharp drop. Is this rise part of a correction or part of an upswing?
Based on my analysis, NZDUSD completed a five wave upswing on Mar 28, 2014, followed by an Expanded Flat abc correction ending on Apr 29. This was followed by a wave 1 which ended on May 06, which was higher than wave b of the prior correction.
The uptrend has resumed and the 1st & 2nd waves are over. The 3rd wave have started. This will be confirmed once price breaks over wave 1 high. Looking for some informative comments.
Right now, this pair is in a messy state for me.
On the weekly chart, I am showing a wedge formation extending from the 2011 high.
Price has broken above the upper resistance T/L and just managed to take out the 2013 high, but has yet to challenge the 2011 high and shows loss of momentum, plus forming a shooting star last week.
In consequence, I am waiting to short this pair on a break below 0.8602, looking for a deeper retracement to more significant support at 0.8515.
A break above 0.8710 would alter my view.