The NZDUSD moved lower in the early part of the week, helped by technicall breaks and slower growth in China. The move to the downside continued until the price moved into a key cluster of support defined by the 200 day moving average at 0.60897, a swing area going back to mid-November at 0.6078 – 0.60856, and the 50% midpoint of the move up from the October low at 0.60716.
That area (0.60716 – 0.60897) will be the key barometer for buyers and sellers next week. Stay above and we could see a rotation back above the broken 38.2% retracement at 0.61423 and up toward 0.6191. Conversely, a break below the cluster of support and it opens the door for a run toward the rising 100-day moving average at 0.60402.
This article was written by Greg Michalowski at www.forexlive.com. Source