The NZDUSD has moved lower this week, and in the process moved below a swing area between 0.6031 and 0.60387. That swing area was retested yesterday on a corrective move higher and found willing sellers.
On the downside, the low price reached earlier today stalled at 0.5986. That was just short of the high of a lower swing area target between 0.5970 and 0.59836.
Since then, the price has been trading above and below the natural resistance at the 0.6000 level. Buyers and sellers to be content to settle in near any friendly level for both.
As we head toward the end of the trading week, those two swing areas will be the close-bias defining levels today and going into the new week.
- Continue the downside momentum and break below 0.5970, and sellers add to their control. Targets would be at 0.5912. The low price from August reached down to 0.58488.
- Move above 0.60387, and then back above the broken 61.8% retracement of the move up from the August low to the September high at 0.60509, and there could be further upside probably with the 200-day moving average at 0.6088 as a key target.
This article was written by Greg Michalowski at www.forexlive.com.
