On May 28th we showed you a forecast of NZDUSD, expecting a temporary rise in wave (2)/B. A chart from this analysis is given below.
If you have been following this pair, you should have noticed that it made some new lows. However, our expectations for a three-wave rally are still valid, especially in case of an ending diagonal, which seems to be developing in wave 5 now.
A triangle in wave 4 and an ending diagonal in wave 5 are giving us a strong indication for a probable reversal ahead in NZDUSD. This count would be invalidated, if price falls below 0.8396, because at that point wave 3 of the diagonal would become the shortest among waves 1, 3 and 5.
