NZDUSD soars to new high, but is backing off. Traders watching 61.8% retracement.

The NZDUSD traded to a new high in early Asian trading. The high price extended up to a swing area between 0.62186 and 0.62235. The high price extended to 0.62215 and started rotation back to the downside.

In the current 4-hour bar, the price has dipped back below the 61.8% retracement of the move down from the July 2023 high. That level comes in at 0.61674 and will be a barometer in the short term for this currency pair. Trade more below it and the next target area comes in at a swing area at 0.6104 – 0.6117. Below that the 200-day moving average of 50% of the 2023 trading range comes in near 0.6090.

Conversely, if the 61.8% retracement can hold support, a rotation back toward the swing area at 0.6220 can be anticipated.

This article was written by Greg Michalowski at Source