The NZDUSD moved lower on Monday and continued that trend today. Looking at the 4-hour chart, the price moved down to test its 200 bar moving average (green line in the chart below) along with the 50% midpoint of the range for October (and the range going back to August). That midpoint comes in at 0.59135. The low price reached 0.5911 and bounced. The current price trades at 0.5936.
With support holding against the dual technical levels, it now increases that level’s importance going forward from a technical perspective. Staying above is more bullish. The next target would be the 61.8% retracement at 0.59468. Above that, and a swing area between 0.5985 – 96 would be targeted followed by the falling 100 day moving average at 0.60147.
Conversely, if the 200 bar MA and 50% retracement are broken at 0.59135 with momentum, that would shift the bias more to the downside with a swing area between 0.5957 – 69 and the 100 bar moving average in between those 2 levels at 0.5964, would be targeted.
This article was written by Greg Michalowski at www.forexlive.com. Source