Analysis for May 9th, 2012
New Zealand Dollar continues moving downwards inside the third wave. The market has fallen down for about 400 pips over the last couple of days. It looks like wave (3)
is almost completed. In the near term, we can expect the start of the correction, during which I will try to open one more sell order.
As we can see at the H1 chart, the price is forming the fifth wave inside wave (3)
. Earlier, wave (2)
was completed in the form of zigzag
pattern. Most likely, in the nearest future wave (3)
will be finished and the market will start the correction.
After eliminating the gap, which took place on Monday, the pair started moving downwards again. It looks like the price is forming an extension
in wave 3
. The target for the next several days is at the level of 1.2800.
More detailed wave structure is shown on the H1 chart. The price completed wave 
near the upper border of the gap, and then started falling down in wave 
. In the near term, we can expect the pair to reach a new local minimum.