After a trend-like move like we saw to the upside in August, the price of the NZDUSD has been correcting lower over the last 9 or so trading days. The price action on Friday after the US jobs report saw a spike higher to swing area resistance at 0.6253, but then reversed lower, and fell below the 100 bar MA on the 4-hour chart for the first time since August 7.
Although the price of the NZDUSD did move briefly back above the 100-bar MA yesterday, buyers turned to sellers once again. Yesterday the 38.2% retracement of the trend move higher in August was tested at 0.6126 and found buyers near that level. After a trend move, getting and staying below the 38.2% is the minimum target that shows the sellers can take back more control.
Those sellers could not do that. They turned to buyers instead.
Today, a move back toward the 38.2% found early buyers against the retracement level. Buyers are stalling the fall (at least for now).
What next?
Going forward, there is close resistance at 0.6167. Stay below keeps the sellers in play. The battle is on.
However, the sellers will still need to get and stay below the 38.2% retracement level.
On the topside, a move above 0.6167, and the cluster of MAs will be targeted between 0.61814 adn 0.62039..
This article was written by Greg Michalowski at www.forexlive.com. Source