Pair returns to February break lower point
The NZDUSD traded above and below a swing area defined by swing lows and highs in the 0.6445 to 0.6486 area from May 2019 to February 2020 (see the price action above and belwo the yellow area on the chart below.
In February, the price broke below and stayed below (had one test in March before heading lower). The price bottomed in March at 0.54668.
It took until the last two days for the price to return to the swing area.
Yesterday, the price retested the lower extreme and backed off. Today, the price has moved into the swing area with a high for the day at 0.6477. The high of the swing area is at 0.6486.
Decision time for the buyers and sellers. Does the price keep the bullish run higher, or do sellers – at least on the first look – lean and correct from this level.
I would expect sellers to lean against the topside level – like they have done today – but have a stop and reversal on a break above.