NZDUSD traded to a 2024 high last week (8 business days ago). The high reached 0.63778. It traded at a low of 0.60516 today after trading 50 basis points above the cut rate. This is 327 pips in one trading day.
Technically, the decline seen in today's trading has pushed the price below a cluster of technical levels, including:
- 100 day moving average and 0.61218
- 0.6113 at the 50% midpoint of the 2024 range
- 200 day moving average 0.60966
Price also entered a 20-month-old swing area between 0.6050 and 0.6084, reaching today's low and falling to 0.60509, the 61.8% retracement of the 2024 trading range. Today's low fell just above that retracement level.
If the buyer wants to make a profit. This would be an area to buy, but I would buy with a stop once the price starts trading more comfortably below the 61.8% retracement level. If this level is maintained, there is a possibility of a correction towards the 200-day moving average. However, if sellers want to maintain more control, they will not want to see the price move above the 100-day moving average.
