The NZDUSD price action this week has been lower, but there also has seen a lot of ups and downs and consolidation after the sharp move lower from the end of September high at 0.6377 to the low this week at 0.6038 (12 days from top to the bottom)
Technically, the NZDUSD has been behaving technically with support near a key swing area between 0.60313 and 0.60387 on the 4-hour chart.
Resistance, so far has found willing sellers against its fallling 200-hour moving average in trading today at 0.60702.
As we move closer to the end of the day (TGIF), and look toward the new trading week, the sellers remain more in control with the 200-hour moving average (see green line on the chart above) at 0.6081 as the close upside target. Moving above that that level would be step 1 for buyers and give them some hope for more upside probing .
Nevertheless move above that level and traders would then look toward the
- 200-day moving average at 0.6091,
- 50% of the trading range since the early August low at 0.6113, and finally the
- 100-day moving average at 0.6118.
All those levels would need to be broken to give the buyers added confidence and more control.
Overall, the sellers are still in control. However, as the market decline slows and the market consolidates, there is the potential to probe in the opposite direction of the trend. Having said that, technical levels still need to be broken as a prelude to the potential for more corrective upside. It is important to know those levels.
Absent those breaks higher technically, and the buyers are not winning. The sellers are still in control.
Watch and learn and prepare for the new week.
This article was written by Greg Michalowski at www.forexlive.com.
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