Tests lows and bouncing
The NZDUSD lost about 30 pips after the most recent global dairy trade auction results showed a decline of -1.6%. The past two auctions have seen increases.
The pair moved to test the low from earlier in the day at the 0.6694 level. The pair had corrected up to 0.6725 going into the report. The current price is back up to 0.6704.
Yesterday, the NZDUSD fell on risk off trading in the Asia Pacific session. The London and NY sessions were more up and down choppy with a downward bias.
A break of the low should solicit more selling. Look for corrections to stall below the 100 bar MA (blue Line).
Looking at the daily chart, the pair at the end of December, moved above the 200 day MA (green line in the chart below). There was one close above the key MA. It was the first close above the key MA since mid August 2014. The move failed and yesterday's sharp fall was partly from the failure and partly from the move out of risk.
The next target on the downside comes in at 0.6677 which was the low from Dec 18. Trend line support comes in at 0.6612 and the 100 day MA comes in at 0.65778 currently (blue line in the chart below).
