Elliott Wave Analysis of Lead and the NZD/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the charts twice to enlarge.
This weekly chart of the price of Lead reinforces the same concept shown in the last post. If this Elliott Wave interpretation is correct, a number of commodities have begun the strongest portion of a substantial bear market . . in this case, the wave 3 within primary C down.
The Kiwi also just finished an ending diagonal. Ending diagonals are typically quickly retraced. In this case, the retracement of the diagonal will just be the start of the down move in my opinion. I’m expecting an eventual return to the extreme of wave 2 within the preceeding extended 5th wave @ .6947, but the Kiwi could go much lower than that if it stays highly correlated with Lead (and other commodities with similar looking weekly charts). If you can scroll down and have both charts showing on your screen at the same time, you’ll see the long-running correlation.
Bearish trends in the Kiwi commonly accompany a global “risk-off” bias.