The NZDUSD price has extended to a new low for the trading year and extended to the lowest level since November 17. The low on that day came in at 0.5939 which is where the price decline stalled today. The current price is trading at 0.59487.
Earlier today, the high praise tried to extend above a swing area resistant between 0.5985 and 0.60018. The high price reached 0.59912 before rotating back to the downside. That area will continue to be resistance this week. If the price can extend back above that level, I would expect sellers to cover short. The swing low from early February at 0.6032 would be the next update target.
For now, however, the sellers remain in control. Move below 0.5939 and traders would look toward another swing area between 0.5857 – 0.5869 as the next downside target..
This article was written by Greg Michalowski at www.forexlive.com. Source