The NZDUSD higher on the day but stalls near the 50% retracement level

Technical Analysis

Author: Greg Michalowski | nzdusd

Some stall in the NZDUSD

The NZDUSD based in the Asian session against the 200 hour MA  (green line). The hold was an invitation to go higher and the buyers obliged and marched to the upside.

Some stall in the NZDUSD

That move initially moved up to test day topside channel trendline. The corrective move off that line found support against the 38.2% retracement at 0.66202, and another run to the upside targeted the line and the 50% retracement.

Although the trendline was broken (and the 50% briefly), momentum could not be sustained and the price rotated lower over the last few hours. 

What now?

When a break fails, traders often look to lean against the old resistance level (with stops above).  The trendline currently comes in at 0.6650. The 50% retracement comes in at 0.66539.  Stay below, and buyers will look to extend below the broken 38.2% at 0.662024 more bearish clues.

If the price moved above the 50% retracement all bets are off. The price should extend higher toward 0.66744 to 0.66877 (swing high from September 22 and 61.8% retracement)
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