The NZDUSD continued its run to the downside in trading today after sharp declines on Friday helped by the risk-off sentiment on stock selling, and lower commodities.
The down momentum continued today and carried the price down toward the 38.2% retracement of the move up from the August low to the August high. That level came in at 0.61265. The low price came in at 0.6123 before bouncing back to the upside. The current price is trading at 0.61515.
Technically, the ability to hold that level gives the buyers some hope. The corrective move lower could only get to that minimum retracement target. On the topside, the 100-bar moving average on the 4-hour chart and the 100-hour moving average, is near 0.6184. That represents the upside target resistance.
On the downside, a break of the 38.2% retracement would have traders looking toward the 200-day moving average at 0.6098. Below that the
- 100-day moving average,
- 200 bar moving average on a 4-hour chart, and the
- 50% midpoint of the August trading range
All come in near 0.60735.
This article was written by Greg Michalowski at www.forexlive.com.
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