NZD/USD’s ascent has come very close to the .8845 2011 peak before failing at the current July high at .8836. As long as the .8845 level is not being bettered on a weekly closing basis we will retain our view that a major top is being formed at the moment.
The break out of the rising wedge and negative divergence on the daily RSI have so far provoked a sell-off to the 55 day moving average at .8651. Below it are the .8517/01 late March and April lows which are being targeted in the weeks to come. Further down is the June low at .8402, a fall through which will confirm a long term top formation.
CB