The price of the NZDUSD moved below a swing area of lows going back to 2023 between 0.58488 and 0.58592. That area encompassed the last five swing lows going back to November 2023 (see numbered circles on the chart above). Getting below those level was a path to lower level including the swing low from 2023 at 0.5774.
However yesterday, the price reached a low of 0.58382 and bounced higher. Today the low price reached a low of 0.58391 and has once again bounced higher. The current price trades at 0.58588.
The breaks are in jeopardy of failing which could give buyers the go-ahead to probe more to the upside.
The next upside target would be 0.58841. That was near the high from yesterday and also near a swing low going back to May 1. It is not the strongest of technical levels but moving back above that level would give shorts and sellers some cause for pause, while giving buyers some added confidence.
Absent that, and the sellers are still more in control.
This article was written by Greg Michalowski at www.forexlive.com.
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