NZD / USD to sub 0.55?

Hi all,thanks for the view.

This analysis is 100% TA and includes no fundamental analysis component. I am not a finance professional or at all experienced in FOREX. I tend to have a bearish tendency in my reading of charts.

I am assuming that we are somewhere in wave 3 down of wave (C). These are medium-term targets. I expect a significant extension in wave 3 or 5 down. I don't expect wave (C) to meet the full 1:1 extension of wave A (as there is a tendency of this currency pair to fall slightly shorter than the 1:1 extension). Let's see how it develops.

There was a "wave failure" or a semi-truncated wave v / 5 in wave C up - which indicates significant selling pressure. After that occurred there was a steep price drop, and in my view, formation of wave 1 and 2 for a (larger scale) impulse wave down to complete the larger correction. This would mean 0.55 and below is on the table.

If not already in a trade you may prefer to wait until wave 3 terminates below the base of the wave B formation, as this would indicate that additional correction is required and allow you to avoid the wave 4 pullback.

A wee note to finish, the USD is itself in a correction and its strength will, in my view, increase in the short term before a significant loss of ground to most currencies. The ground that is lost now will be given back. Protect your funds everyone.