The NZDUSD fell sharply last week and in the process fell below a key support area between 0.5848 and 0.5859. That break failed and the price except back higher. In trading on Monday, the price fell back below that swing area for the second time, and for the second time the break failed.
This time, the rebound took the price on Tuesday and into Wednesday above the swing low from three weeks ago and they swing low from last week at 0.5912. That break should’ve led to further upside probing, but it to failed quickly and has since rotated back down.
Today the low price retested the high of the aforementioned swing area between 0.5848 and 0.5859. The buyers came in against the 0.5859 level and pushed the price back higher.
It seems with two failures on the downside and a failure on the topside, that traders are bit cautious. That may get both the buyers and sellers a reason to buy low and sell high as the market decides what to do against is key support area.
This article was written by Greg Michalowski at www.forexlive.com. Source