NZDUSD trades to highest level since April 2019, but backs off

Technical Analysis

Author: Greg Michalowski | nzdusd

The 0.6780-0.6790 ceiling area was broken but only barely.

The NZDUSD traded to its highest level since April 3, 2019, getting above a ceiling area between 0.67803 and 0.6790. That's the good news for the buyers. The not so good news is that the price can only extend to 0.67969 before rotating back to the downside. We currently trade just below that swing area at 0.6779.  

The 0.6780-0.6790 ceiling area was broken but only barely.
If the price is to go higher, getting above that swing area and the high for the day is the next key hurdle from the daily chart.

Drilling down to the hourly chart, at the session highs today the pair was also testing a topside trend line (see the hourly chart below). That may have helped contribute to some profit-taking against the risk defining levels.

The corrective move to the downside today, saw the price move down to test Wednesday's high price at 0.67585 (the low corrective price today reached 0.67575 before bouncing back higher). The inability to get below the 0.67585 level, keeps the buyers in play for another run toward the highs (stay above 0.67585 though). An interim shorter term target would be the September 2 high price at 0.67879, before making a run toward the highs at 0.6796.

NZDUSD on the hourly chart
SUMMARY:  The daily chart and the hourly chart helped stall the rally. However, the intraday corrective move also stalled near where support buyers should have been. As a result sellers are above and buyers from below in the range between 0.67585 and 0.67969 will now battle it out. The price action remains more in the favor of the buyers, but due to long-term resistance, the buyers will still need to exert the pressure on the sellers. That battle may need to be decided next week
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