NZDUSD breaks above resistance area/61.8% retracement

Technical Analysis

Author: Greg Michalowski | nzdusd

Risk now at 0.6606 

The price of the NZDUSD has broken above the 61.8% of the move down from the June high at 0.66067 and a swing area at 0.6610-134. Bullish.   

Risk now at 0.6606 

The price is trading to new session highs on the break (trading at 0.6622 as I type). Looking at the 4 hour chart above, the 0.6672-83 is the next target (swing levels) ahead of the 100 and 200 day MAs at 0.6698 and 0.6704 respectively.

Risk for buyers is now the 0.6606 level (give a few pips below that level).  

Taking a broader look at the daily chart below, the price moved away from a swing area at 0.6572-818. The January low was at 0.6572. The April lows were at 0.65818 and 0.65796.  The price has traded above and below the level in May and again in June, but the low today did stall ahead of those levels before moving higher. Bullish.  

The recent price lows stalled ahead of the May low. Five the last 6 days has seen higher closes. for the pair, with the only down day being a 1 pip decline (Friday).  The 0.66556 is the 38.2% of the move down from the March 2019 high.   That is ahead of the swing area on the 4-hour chart at 0.6672-83 (on more upside momentum).    

The NZDUSD on the daily chart
Although the pair is showing bullish signs on the move higher, it is important to keep the move in perspective. The price is still below the 38.2% on the daily and the 100 and 200 day MA. That does not mean the price can't continue to move higher (stay above 0.6606), but be aware that the sellers may also show up at resistance targets above (or on a move below support).  

For today, the technicals are showing more buying.  
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose