Looking to sell the retracements
THe NZDUSD has tumbled after the surprise cut from the RBNZ. The prior lows going back to May 29 and JUne 1 come in at 0.7075-81. That will now be close risk. Above that the 38.2-50% of the move lower comes in at 0.7097 to 0.7123.
The move lower was quick and sharp - nearly 200 pips. That could get traders offsides at the lows. If there is a correction, it will test the market at these levels. DO you really want to see the price head lower? If they do, the sellers should show up there. The price is heading to the underside of the lows from late May and early June. Looking for the sellers to step up.
Looking at the weekly chart, the price has the 0.6945 lows from August 2010. Below that the 50% of the move up from 2009 comes in at the 0.6866.
