The NZD/USD stalled its rise yesterday at the 38.2% retracement level (0.5688) of the decline from the November 29 high. This level also aligns with a key swing area between 0.56837 and 0.56917. Sellers capitalized on this resistance, pushing the price lower into the close.
Today, the pair has experienced choppy, range-bound trading. Buyers, however, stepped in near yesterday’s low at 0.5648, just above the rising 100-hour moving average (0.5643). Notably, the price also rebounded off the 100-hour moving average on Tuesday, reinforcing its importance as a support level. A break below this level would strengthen the bearish outlook.
On the upside, resistance is found at the falling 200-bar moving average on the 4-hour chart (0.56718). A breakout above this level could shift momentum toward a more bullish bias, targeting the swing area and the 38.2% retracement zone between 0.56837 and 0.56917.
This article was written by Greg Michalowski at www.forexlive.com.
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