NZDUSD tests resistance and comes back off

Written August 19, 2011 at 11:14 AM EST by  

The NZDUSD moved sharply higher with the dollar selling but ran into resistace against the 38.2% and the 200 hour moving average (green line in the chart above).  The move lower was quick , but the pair found support against the 100 bar MA and the 50% of the days trading range on the 5 minute chart (see chart below). Holding that level sent the price back higher but the rally stalled before the 200 hour MA at the 0.8283 level and a new move lower ensued.

The up and down action on the NZDUSD is indicative of a more balanced market.  Staying below the 38.2% of the weeks high to low range (see chart above), has the bears feeling a bit better. A move below the 0.8237 level and then the 50% retracement at the 0.8231 will give them more confidence to the downside. 

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One Response to “NZDUSD tests resistance and comes back off”

  1. JForex on August 19th, 2011 12:29 pm

    Also indicated M15 38.2% Downward continuation.

    http://flic.kr/p/aep2xa

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