NZDUSD cracks below floor/50% retracement and runs more

Technical Analysis

Author: Greg Michalowski | nzdusd

Trades above and below the 61.8% retracement

The NZDUSD - like a number of different currency pairs - peaked on Friday at 0.67149. That move took out the July 28 high price of 0.6702, but momentum faded and the price started to erode.

Trades above and below the 61.8% retracement_
The Asian and London morning session saw the price lawful higher or lower. The low price did fine support against a swing area going back to July 21 (see green numbered circles). In the early New York session, the price fell below that floor and also the 50% retracement at 0.66085. That retracement level and swing area is now resistance on a move higher (the floor becomes a ceiling).  

The price has been trading above and below its 61.8% retracement at 0.65833. That level also corresponds with a swing high going back to July 15.  Although the price has traded all the way down to 0.6574, there is more to a low above and below the retracement level. On more selling, the swing lows from July 21 at 0.6558 would be another downside target.

Taking a broader look at the daily chart, the price fell below a trendline late Friday,. The high price today stalled against the underside of the trend line break. The price to and through a swing area at 0.6499 to 0.6518. That price moved to a low at 0.6574 but has bounced back into the swing area.  Watch that area for clues to the bias as well. 

NZDUSD on daily

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