The pair remains below the level of 0.6000
The NZDUSD fell sharply during the Asian session after the RBNZ almost doubled the QA stimulus. The low price fell to 0.5999 (call it 0.6000) and found support buyers against the level of natural support.
The upward correction peaked in the early hours of NA trading. However, as Fed Powell spoke, the flow of funds has shifted from risk to the USD. The NZDUSD has resumed its downward course
Since then, the price may have fallen below the level of 0.6000 and remained below this level for the past 3 hours. Easy trading is to “stay below the 0.6000 level and sellers are more in control”.
However, key support is looming on the horizon.
Looking at the hourly chart, the next target is 0.5975. This level corresponds to a downward trend line AND a low swing from April 24th. Go down below and that opens the door to more downward polling.
Can traders buy the drop against support targets?
Sure. The risk can be defined and limited. It would be necessary to return above the level of 0.6000, then the 61.8% broken at 0.60108, to give buyers more confidence in the fact that a minimum is in place.
SUMMARY: Sellers control the pair, with the price trading near the lows and below the 0.6000-10 area. However, there is double support to contend with at 05975. A battle is therefore in progress with the bearers and sellers observed in the pair for most of the trading day.