The buyers from yesterday have been forced to sell some today
The NZDUSD is making new session lows and in the process has broken below some technical levels including the:
- 38.2% retracement at 0.6382
- 100 bar moving average on the 4 hour chart at 0.6380
- 200 hour moving average at 0.6372
- 50% retracement of the move up from Tuesday's low at 0.63713
The pair is now testing the next target at the 100 hour moving average at 0.6363. So far buyers have leaned against that level. Stay above gives those dip buyers some comfort. A move below however, could solicit more selling pressure in the pair.
Remember just yesterday the price shot higher after the RBNZ surprise market by not cutting rates by 25 basis points. The Chair Orr did say that they did discuss cutting rates and it was a hard decision. However it wasn't until the recent technical breaks that more of the buyers began to bail on the run lower.
Can the selling continue, or has done enough. So far the dip buyers are trying once again to put a toe in the water and stalled the fall. The pair currently trades at 0.6369 as I type.
