We see price breaking down on New Zealand dollar/U.S. dollar (NZD/USD) currency pair, away from former Wave B high that was found at the 0.7558 level. This strong weakness below the lower channel line suggests a change in trend to be happening. We believe a five-wave decline can be in progress, with Waves 1 and 2 already completed. The projection target for Blue Wave 3 is near the Fibonacci ratio of 161.8. That said, once Wave 3 fully unfolds, a correction into Wave 4 may follow and search for resistance near the upper side of a lower channel line.
Now switching to the 4-hour view. Here we see price nicely breaching lower, away from the former Wave 4 corrections that were found at the Fibonacci ratio of 38.2. Price can now reach levels near the Fibonacci ratio of 61.8 for Wave 5.