NZDUSD a big mover today, but off the lows. What next?

The NZD/USD pair is experiencing a significant decline today, down -1.26%, making it one of the biggest movers in the market. The pair opened with a gap lower, breaking below the January low of 0.55398 before extending its drop to 0.55153, just a few pips away from the 2022 low of 0.5510—a level that marked the lowest point since 2009. However, buyers stepped in at this key support level, triggering a rebound that pushed the price back into a swing area between 0.5581 and 0.55918, with an intraday high of 0.55846 before the pair rotated back downward.

From a technical standpoint, the 38.2% retracement of the January decline at 0.55939 remains a key resistance level. As long as the price stays below 0.55812 – 0.55939, sellers will retain control. On the downside, the next critical targets include the January low at 0.55398, followed by today’s session low of 0.55153, and ultimately, the 2022 low at 0.5510.

A decisive break above 0.55945 (38.2% retracement) could shift the momentum, leading to further upside exploration. In that case, the next key level to watch would be the 50% retracement of the January decline at 0.5619, signaling a stronger bullish recovery. Until then, the broader bias remains bearish, with sellers looking to maintain control below key resistance levels.

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