The NZDUSD – like some of the other currency pairs vs the USD this week – saw multiple up-and-down price action. It moved to the upside on Wednesday and was spurred on by the FOMC rate decision. Its move back to the downside on Thursday and today was spurred by stronger growth and a rotation back into the USD dollar.
The move lower has now kicked the pair down to a support target area between 0.5985 and 0.60018 (basically below 0.6000). That area may lead to some support buying on the first test at least. On the topside resistance comes in at 0.6037 followed by the 50% midpoint of 0.60697 and the 200-day moving average at 0.60363. It would take a move above those levels to get more buyers believing, and disappoint the sellers.
The video above outlines all the levels in play and explains why.
This article was written by Greg Michalowski at www.forexlive.com. Source