The NZDUSD moved lower with the USDs run higher, but has snapped back higher after testing the high of a swing area going back to the end of July/early August between 0.6104 and 0.6117 (see red numbered circles on the chart below). The low price reached 0.6118 and bounced back higher. We are currently trading at 0.6166.
Recall the NZDUSD moved higher earlier this week after the RBNZ kept rates unchanged but was more hawkish. The price extended above the 61.8% retracement of the move down from the July high to the October low. That level came in at 0.6167, but yesterday the price moved back below the 61.8% retracement and has traded above and below that technical level in trading today.
The flush to the downside, however, did hold that support swing area which is good news for the buyers.
Getting back above the 61.8% retracement and staying above that level is now the next hurdle for buyers looking for more upside. On the top side the high price yesterday reached above 0.6200 to 0.6207. Move above that level and a swing area between 0.6218 and 0.6223 would be targeted.
This article was written by Greg Michalowski at www.forexlive.com. Source