There is the work to do…
Toward the end of trading yesterday, I posted on the NZDUSD (See «NZDUSD runs/breaks higher but with work to do»).
The «break» was a move above a solid trend line and the 50% retracement around 0.6110.
The «work to do» was the need to extend above the swing high from May at 0.6155. The high yesterday reached 0.6157 (in addition the end of April high is a topside target to get to and through at 0.61748).
Today, the high price in the Asian session could only get to 0.6149 (below the 0.6155 target). The subsequent moved to the downside stalled within pips of the 50% retracement and the underside of broken trend line at the 0.6108-11 area.
So, upside targets could not be taken out, but the price did remain above the key break area. The latter keeps the buyers still more in control as that trend line and 50% break was something new. However there is still work to be done.
The technical lines have been drawn in the sand. The buyers hold a better hand right now. However,»the work still needs to be done» on the topside.
PS the broader indices have given up their gains but the NZDUSD is not reacting much to the reversal to new session lows.
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