October 24, 2024 at 06:13PM
Yesterday’s Price Action
Yesterday, the NZD/USD followed the USD’s upward momentum, breaking below the swing area support between 0.6031 and 0.60387. This move propelled the pair to a low of 0.59976, just shy of the psychologically significant 0.6000 level.
Today’s Market Dynamics
Today, the price rebounded, retesting the swing area resistance (0.6031-0.60387), but sellers leaned against the low of that area in the early US session. The selling has taken the price back toward the 0.6000 target. The low reached 0.6007.
Key Levels to Watch:
Resistance: 0.6031-0.60387 (swing area)
On a break higher, the next target: 0.60509 (61.8% retracement of August’s uptrend)
Support: Psychological support comes in at 0.6000. A move below that level will target a swing area between 0.5970 and 0.5983.
Market Implications of the price action today
The buyers had their to take the price back above swing area resistance, but found sellers instead.
That keeps control firmly in the sellers hands
The price is also below the 61.8% retracement at 0.60509
The buyers still need to show that they can take back control. They tried to move higher today, but stalled at resistance instead.
This article was written by Greg Michalowski at www.forexlive.com.