NZDUSD recovered nicely from 0.6083 but it’s in three waves after recent rejection down from 0.6390 resistance. We see this as a potential corrective rally that represents (B) wave, possibly already completed after lower swing high and new swing low formed in the last few trading days. Ideally, pair is headed south for five wave drop within (C) which has room even for 0.6000. However, this wave (C) is still part of a higher degree contra-trend movement, so we believe that kiwi will turn bullish this year, but from lower support levels, according to daily count. The potential ending diagonal also suggests that support will be seen at a new 2023 low.
On a higher degree chart, we see pair turning up from an important trendline of a potential triangle, so wave (E) can be finished. As such, more gains will be expected in the upcoming weeks/months.
%20wave,%20possibly%20already%20completed%20after%20lower%20swing%20high%20and%20new%20swing%20low%20formed%20in%20the%20last%20few%20trading%20days.%20Ideally,%20pair%20is%20headed%20south%20for%20five%20wave%20drop%20within%20(C)%20which%20has%20room%20even%20for%200.6000.%20However,%20this%20wave%20(C)%20is%20still%20part%20of%20a%20higher%20degree%20contra-trend%20movement,%20so%20we%20believe%20that%20kiwi%20will%20turn%20bullish%20this%20year,%20but%20from%20lower%20support%20levels,%20according%20to%20daily%20count.%20The%20potential%20ending%20diagonal%20also%20suggests%20that%20support%20will%20be%20seen%20at%20a%20new%202023%20low.){kind=link}