The pair failed on the RBNZ decision break, but stalled near resistance on the bounce.
The RBNZ kept rates unchanged after the government imposed new lockdown restrictions and Covid cases started to increase. The initial move was for a break below support between 0.68805 and 0.68982. I wrote about the area in a post from yesterday.
However, that break failed quickly after reaching a low at 0.68662. The price snapback higher and moved into a resistance area above between 0.69459 and 0.69560. In the post yesterday, I wrote about the area saying:
The lockdown news sent the pair plunging to the downside reaching the recent low levels near 0.68994. In the process, the pair fell below a swing area between 0.69459 and 0.69560.
Through the interest rate decision, watch that area for bias clues. A move above should see additional upside momentum with the 50% of the range since July 20 at 0.69838 as a another target to get to and through.
The high price - and the quick rebound - stalled today at 0.69507,between that area. The buyers needed a break above. Instead, sellers used the area to lean and push back lower.
What now?
The pair is back down retesting the low a swing area at 0.68805. The buyers are so far are lean against the level. However, on a break, traders will once again be looking for more momentum with the low for the day at 0.68662 a new target to get to and through.
Hold now, and the price action solidifies the ping-pong up and down range with 0.6956 as resistance and 0.68805 as support.
