NZDUSD holds resistance against 50% retracement this week and rotates lower. What next?

The NZDUSD this week moved higher on Thursday and moved up to test the 50% midpoint of the April trading range at 0.59668, before backing off on the stronger US GDP and price data.

The price retraced the entire move to the downside with momentum in the Asian session today. That follow-through upside move took the prize back up to the 50% midpoint level where traders banged against the level on a number of different hourly bars in both the Asian and European morning session. However, the price could not push through that midpoint level with much momentum, and the price has since rotated to the downside with the overall dollar buying today.

The move lower has come down to test a lower channel trendline. Support buyers have come in against that level.

So resistance held against the 50% retracement. Support held against the upward sloping channel trendline. Those levels will be key barometers on the top and bottom side for both buyers and sellers in the new trading week.

This article was written by Greg Michalowski at www.forexlive.com.