NZDUSD stalls just ahead of the 61.8% retracement level

The NZDUSD last week traded up and down in a narrow 70 PIP range. The low price stalled within a swing area between 0.6073 and 0.6086.

On Friday the price moved higher closing near in the middle of the week’s trading range between 0.60816 and 0.61515 (70 PIP range).

In trading on Monday, the price moved higher and that momentum has continued today. The high price today extended up to 0.6169. That high was just short of the 61.8% retracement of the move down from the December 2023 high at 0.61706.

The price has since rotated lower currently trading at 0.61518 right near the high price from last week.

Overall, buyers had their shot extending above the high from last week and 0.6151 and testing the 61.8% retracement, but could not get through that next key target. That stall has helped to neutralize some of the bullishness seen since Friday. It will now take a move above the 61.8% retracement, to increase the bullish bias going forward. Getting above would open the door toward 0.62154 where both the February and March 2024 highs stalled.

On the downside, moving below 0.6151 and then the swing high from May 16 at 0.6139, would disappoint the buyers and likely lead to more downside probing. The 50% and 0.61096 would be the next target on a fall below 0.6139.

This article was written by Greg Michalowski at www.forexlive.com.