NZDUSD was back up to swing low area from last week/this week

Technical Analysis

Swing area between 0.7207 and 0.72122

The NZDUSD followed the dollar lower trend and spiked to the upside. 

The move higher took the price back above its 100 day moving average at 0.71780. It also moved above the 38.2% retracement of the move down from last week’s high at 0.71977. The high price moved to 0.72087. That high stalled within a swing area since May 25 between 0.7207 and 0.72122 (see red numbered circles). A move above that area would have traders targeting the 50% of the range since last week’s high at 0.72203, and the falling 100 hour moving average at 0.7222. It would take a move above both those levels to increase a bullish bias.

On the downside, a break back below the 38.2% retracement (and away from 0.7200) would be a small negative and should lead to further probing with a potential move back down toward the 100 day moving average at 0.7178.  Moving below the 100 day moving average would certainly ruin some of the bullish bias seen today. 

Invest in yourself. See our forex education hub.

Articles You May Like

EUR/USD retreats towards 1.0500 ahead of German inflation, Fed vs. ECB battle in spotlight
A day after Powell’s assurances about the economy, markets are worried that ‘the Fed breaks something’
Gold rate today: Yellow metal falls after Powell testimony; silver below Rs 60,250 level
Gores Guggenheim Stock News and Forecast: GGPI shares dropping Thursday despite Polestar merger completion
EUR/GBP: Renewed Brexit fears may start to weigh on sterling – Danske Bank