Earlier today, the NZDUSD buyers took the price above its 200-day moving average and 50% midpoint of the move down from the July high to the October low. Both of those technical tools came in at the same 0.6092 level. The high price extended up toward the low of a swing area near 0.6104, but could not go any further. The subsequent move back to the downside took the price back below the midpoint in the 200-day moving average. Buyers had their shot, they failed.
What now?
I would expect that the sellers would now lean against the dual technical levels near the 0.6092 level with stops on a break above. After the buyers took their shot and missed, it’s now the sellers turn to try to establish control. On the downside traders would look toward the 0.60467 – 0.60598 area as the next downside target to get to and through to increase the bearish bias.
For a full view of the technicals driving this currency pair click on the video link above.
This article was written by Greg Michalowski at www.forexlive.com. Source