Wave summary:
Despite a rate cut from RBNZ kiwi rallied and our fear of more downside pressure within the corrective channel was confirmed. We have seen a test of the 81.3% corrective target at 1.5185, which should have complete wave ii and start a new impulsive rally to above 1.5839.
However, to confirm that wave ii is complete and wave iii higher is developing, a break above minor resistance at 1.5550 and more importantly above resistance at 1.5646 is needed.
Trading recommendation:
Our stop at 1.5390 was hit. We are still looking for buying opportunities and will buy EUR at 1.5240 or upon a break above 1.5550
