Unlike my prior post on EURUSD, I think the RBNZ rate decision will work in my favor. While the fib ratios are ballpark (to say the least), upcoming rate decision will likely rocket the market down to the .71444 handle (target 1, which corresponds to 2011 and early 2015 structure lows), if not lower (target 2, recent structure). While it would be nice to see price action climb to point D for the sake of the pattern, consolidation is more likely ahead of the rate decision.
Then there's the possibility of a rate hold. The more likely a rate cut, the more damage an upset will do on the market. Don't forget what happened to the Yen earlier this year!
Then there's the possibility of a rate hold. The more likely a rate cut, the more damage an upset will do on the market. Don't forget what happened to the Yen earlier this year!
Comment:
Consolidation really swinging around key support (purple), perhaps a head and shoulders is in effect? If so, good news for us bears.
Comment:
Apparently the rate decision was sufficiently priced in, and the market response moved against the anticipated bearish rally typically associated with a weakened currency. In any case, the crab-like structure has some validity now!