NZDUSD trades to a new session low

Technical Analysis

Pair is staying below the 0.6000 level

The NZDUSD fell sharply in the Asian session after the RBNZ nearly doubled the QA stimulus. The low price fell to 0.5999 (call it 0.6000) and found support buyers against the natural support level.

Pair is staying below the 0.6000 level

The correction higher peaked in the early NA trading hours. However, as Fed’s Powell spoke, the flow of funds moved out of the risk and into the USD. The NZDUSD resumed its run back to the downside

The price has since been able to crack below the 0.6000 level, and stay below that level over the last 3 hours.   The easy trade is “stay below the 0.6000 level, and the sellers are in more control”.  

However, there is some key support looming ahead. 

Looking at the hourly chart, the next target is  0.5975. That level corresponds with a downward sloping trend line AND a swing low from April 24.  Get below and it opens the door for more downside probing.  

Can traders buy the dip against the support targets?

Sure. Risk can be defined and limited. It would take a move back above the 0.6000 level and then the broken 61.8% at 0.60108, to give the buyers more confidence that a low is in place.

SUMMARY: Sellers are in control in the pair with the price trading near lows and below the 0.6000-10 area. However, there is some dual support to contend with at 05975. So a battle is on with the dip buyers and the sellers seen in the pair for most of the trading day.

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