The New Zealand Dollar was murdered by it’s US counterpart. In fact, from its high in March of 2008, the pair fell from just over 0.8200 to a low of under 0.4900. Resistance was found at the identified dotted yellow line.
Of course, this downward sloping ceiling was penetrated on the day that the Federal Reserve announced that it would be undertaking a quantitative easing policy. Nonetheless, NZDUSD found a new resistance level located at the identified downward sloping white line.
The pair failed to slump back down to resistance-would-be-support (yellow dotted line). Instead, the pair fell just a tad, only to slowly creep its way upward. Such price-action may be indicative of faltering selling pressure. That is, traders may have an overall bias towards the north side.
Currently the pair lies just under resistance and ought to be monitored for either a breakout upward, or a retracement lower.
