The NZDUSD has been consolidating over the last week or so of trading with the 61.8% of the move up from the August low. That level comes in at 0.60509.
Last week, the price held that level, bounced, and then broke below the level but quickly rebounded.
This week the price returned to the 61.8% and fell to a new low going back to mid-August but stalled at a swing area between 0.60313 and 0.60387. The price bounced back above the 61.8% retracement.
Earlier today, the price once again moved below 61.8% retracement but could not sustain momentum again. The last two hourly bars on the 4-hour chart have held support against that retracement level.
If the buyers are to take more control, they need to hold 61.8% retracement. If they can’t they aren’t holding control. They are losing to the sellers.
Yes the price ultimately need to get below 0.60313 to increase the sellers confidence, but the burden of proof is still with the buyers below the 200 day MA/100 day MA (at 0.60919 and 0.61119 respectively)
This article was written by Greg Michalowski at www.forexlive.com.
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