The NZDUSD moved to the highest level since August 26th and in the process moved briefly above a topside swing area between 0.6184 to 0.6195. The high price reached 0.62017 and backed off. The high was on Tuesday
The move back to the downside in trading today saw the price correction move below a topside channel trend line broken during last week's trading and down to test the 38.2% of the move up from the November low. That retracement comes in at 0.6063. The low for the day reached that same level at 0.6063.
NOTE: The retracement is just of the move up from last swing low. That move higher saw the trend move higher accelerate as evident from the move above the topside channel trend line (the pace of the advance accelerated). When the failure above the topside target area materialized, the overbought conditions were ripe for the correction lower over the last two trading days.
However, moving back into the channel on the downside, but stalling at the 38.2%, and moving back above the topside channel line is showing the buyers are not necessarily done. A move above 0.6129 followed by the swing area between 0.6155-66 and 0.6184 -95 are the next upside targets that if all broken, would open the door for more upside momentum.
What would hurt the buyers looking for more upside?
For one fail right here at the 0.612186 target and fall back into the channel, and then below the 38.2% retracement of the last move higher. Then traders would look toward the 100 day MA at 0.6020. That 100 day MA is joined by the 50% of the same move higher increasing that levels importance. Move below it and sellers are wrestling control from the buyers seen since the October low.
