NZDUSD: Trying to catch a wave 3 down.

The kiwi has been in a corrective phase and may have just completed the wave (A) of that correction. This corrective phase could be the wave 4 of the larger 5 wave decline. If so, it indicates that there could very well be a much larger down move yet to come. But not until this correction is over.

The correction may have yet a larger move up to come after a decline in a wave (B). This wave (b) might come pretty fast as there will be many traders who will think that this wave (B) down is actually a resumption of the main down trend. Which if my wave count is correct, it isn't and may catch many trader's in a bear trap. So be aware of the possibility that this coming move down may very well only be a temporary decline and it's end will signal for a larger move up in a wave (C).

For now, in the 4Hr Chart above, there is a POTENTIAL crab pattern present and it's completion could mark the end of the wave 3 of 5 of the wave (B) down move. This move down would be the wave (c) of the wave (B) and the wave (c) could be unfolding in 5 waves. If that is the case, what may be coming now is a wave 3 of that 5 waves. Eventually, the wave (B) could go down enough to be a retest of the lows of the wave 3 of he larger main trend.

DAILY CHART - Wave Count

MY TRADE PLAN
I am selling at this point looking to take advantage of a possible wave 3 down and looking for that crab to complete. I'll place stops above the wave (b) end which is also the C point of the crab.