In below article we will describe NZD/USD chart (on different TFs) using Elliott Wave Theory – you can read about waves and the whole strategy here.
NZD/USD
We have really interesting situation here. Move from the low can be considered as an impulse. If it is the truth, then the current decline will become the first wave of the correction. Why the first one? Because the downward movement is five-waves one. It means, that we should see at least zigzag inside 2B wave. If we take a closer look at lower TF we may see an upward five, which may become a start of b wave.
We can also consider another scenario.
We assume here that upward move from the low is a c wave of irregular correction and the last decline is the first downward wave of the next supply movement.
In the two above scenarios we may look for short trade near 50% retracement and wait for chart reaction after approaching the support in the form of a wave low.