The NZDUSD has made a break to the upside and in doing so, extended above a swing area between 0.5683 to 0.5691. Within that ceiling area, sits the 38.2% retracement of the move down from the end of November high. That shows that the buyers are looking to take more control.
Can the buyers keep that momentum going into the new trading week and during next week’s trading. That will be a key area for me to stay above. If the price moves back below, the risk is that the buyers on the break area disappointed, and they give up on the break.
When the markets trend like they have in the NZDUSD, reversing the trend is hard, but there are clues from the shift. It does not mean that the gains are forever, but buyers are taking back some control.
There is work to do, and in the video I outline the next targets and explain why, but buyers are making a play.