The NZDUSD this week found support at the last swing low going back to August 6 at 0.5912, before ignitiing a run to the September high at 0.63778.
The subsequent high reached yesterday, extended to another key area. The swing area at 0.60313 to 0.60443 stalled the rally (see red numbered circles).
So buyers did their job. Sellers did their job. What next?
The move back lower is now back below its 100 bar moving average on the 4-hour chart. That level comes in right near the natural resistance level at 0.6000 level. Getting below that level now puts a ceiling against the level and it will be a key barometer in the new trading week. Stay below is more bearish. Move above it and the buyers take back some control, but still has the swing area up to 0.6038 as a target to get to and through.
On the downside, the low from last week at 0.5938 followed by the low for the week at 0.5912 become the next target to get through, followed by the low from August at 0.58488.
Sellers in control.
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NZDUSD Update
Key Points
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NZDUSD found support at 0.5912 (Aug 6 low) and rallied to 0.63778 (Sept high).
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Yesterday’s high stalled at 0.60313-0.60443 swing area.
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Price now below 100-bar MA (4-hour chart) and 0.6000 resistance.
Trading Bias
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Bearish: Sustaining below 0.6000.
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Bullish: Breaking above 0.60313-0.60443 swing area.
Key Levels
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Resistance:
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0.6000
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0.60313-0.60443 swing area
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Support:
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0.5938 (last week’s low)
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0.5912 (Aug low)
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0.58488 (Aug low)
Market Sentiment
Sellers currently in control, targeting downside levels.
This article was written by Greg Michalowski at www.forexlive.com.
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