The NZDUSD move down early in the Asian session yesterday on it’s way to a low at 0.6733 . That was just below a swing area between 0.6734 and 0.6740.
The subsequent rise to the upside moved up to test the Tuesday low at 0.6764. After moving just above that level not once but twice, and failing to gather much upside momentum, the price moved back down toward the lower swing area. This time the price printed a new session low at 0.67323 before finding support once again.
The last five or so hours has traded within a narrow range with a high price of 0.6754. The low has come in at 0.6739.
Going into the new day, the range for most of the European/North American session will be the risk defining levels. Move below 0.67343 – and stay below – would have traders entering into the lower extreme area from December that bottomed three times at the 0.6700 level (or within a pip or two). On the topside, getting above 0.67641 have traders looking back toward the 0.6787 level along with the falling 100 hour moving average at 0.6796.