NZDUSD sellers defining the ceiling for the pair between 0.56837 and 0.56917.

The NZDUSD has not been without it’s volatility since the US inauguration on Monday. However, the highs reached on Monday, and Tuesday and again today, stalled near the earlier January highs and the 38.2% retracement of the move down from the end of November high. That “ceiling” has gotten stronger. Buyers would need to get and stay above that area (between 0.56837 to 0.56917) to take more control.

Absent that and the ceiling is a ceiling.

On the downside, the low from the day at 0.5648 is the next target. Trading to a new low for the day should give the sellers more confidence for a move to the rising 100-hour MA.

On Tuesday, the low price stalled right at that MA, increasing the levels importance going forward.

In summary:

• If bullish the USD, the ceiling/38.2% retracement is your risk. Moving below the cluster of MAs increases your control technically
• If bearish the USD you would want to see the 38.2% and ceiling broken and stay broken.

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