The NZDUSD moved sharply lower yesterday and continued selling today. The low price today reached the high of the swing area on the daily chart between 0.60559 and 0.60844 (and traded to the lowest level going back to November 17).
The low price today reached just below the high of that swing area at 0.60832. That area down to 0.60559 remains the downside target to get to and through. A break below would look toward the 50% midpoint of the range since the October low. That level comes in at 0.60242.
Today, the subsequent bounce off of the high of the daily swing area, has seen the pair move back toward the February lows near 0.61299 and 0.61317. The high price did extend above those levels to a intraday high of 0.6137, but was quickly rejected. The price has rotated back lower.
Traders will now be watching the 0.61299 up to 0.6137 as a risk defining area. Stay below is more bearish. A move above would have traders looking toward the 38.2% retracement of the move down from last week's high. That level comes in at 0.61564.
