The NZDUSD traded sharply higher yesterday helped by a risk on sentiment, and more bullish technical breaks. More specifically, the price moved above its 100-day moving average currently at 0.60786.
The price also moved above a key swing area between 0.6078 and 0.60856. That area was home to several swing lows and swing highs going back to November 2023 (see red arrows on the chart below). Momentum to the upside has increased after the breaks above those levels yesterday.
Today there has been more corrective price action to the downside. However, the low price stalled comfortably above the aforementioned levels including the 100-day moving average and swing area.
Going forward, the 50% retracement is a key level that would need to be broken and stay broken, to increase the bullish bias going forward. The current price is back above those levels, tilting the bias more to the upside.
This article was written by Greg Michalowski at www.forexlive.com. Source