The NZDUSD breaks lower and is the biggest mover. What led to the decline? What next?

The NZD is the weakest of the major currencies. The NZDUSD is the biggest mover.

The pair started it’s shoved to the downside after breaking below its 200 day moving average. I spoke to that level in the post andvideo released yesterday (CLICK HERE).

The momentum to the downside was held by weaker Australian CPI data which dragged the NZDUSD down as well.

The move lower extended below other swing areas between 0.61321 to 0.61406, and 0.6104 to 0.6114. The 50% midpoint of the move up from the early June low at 0.6115 was also broken.

What next?

The price action is trading above and below the 61.8% retracement of 0.60844. However it is the swing area between 0.6104 and 0.6115 that is key for the short term/medium-term bias in the NZDUSD.

If the sellers are in control, staying below that swing area and midpoint level (at 0.61154) is key. Stay below and the bias remains the downside. Move above and there probably is some disappointment on the failed break.

This article was written by Greg Michalowski at Source