After a run lower from September 18, the corrective move is modest
The NZDUSD wanders higher after bottoming last Thursday at 0.6511. The low on Friday and Monday were higher as was the low today. The price today moved above and away from the falling 100 hour MA. All that is bullish. The issue is the price is simply not racing higher.
On the way down, the pair moved from a high on September 18 of 0.67969 to a low 5 days later at 0.6511 (285 pips). The move higher over the last 3 days has gone from 0.6511 to a high today of 0.65966 (85 pips). The move higher is a "wander".
If the pair is to continue to move higher, getting above the 0. 65903 to 0.6600 area (see yellow area in the chart above). A move above that level would target the 38.2% retracement of the move down from the September 18 high at 0.66202 and the falling 200 hour moving average at 0.66254. Also in the area is a upward sloping channel trendline currently at the same level of the 200 hour moving average (green line).
The price is higher… Yes. However, the momentum is not all that great. Should the price momentum stall, a move back below the 0.6569 level and then the 100 hour moving average (at 0.6553) would spoil the buyers hopes for a bigger move to the upside.
