Traders leaning....Can it hold?
The lean is on against the 200 hour MA for the NZDUSD. The pair has been coming off since peaking on Tuesday after higher Global Dairy Trade auction prices. The dollar buying today has sent the pair down to the MA support level where there has been some profit taking.
Looking at the 5 minute chart, you can see the action around the support area. If the support does hold, a move above the 0.6947 -52 will be eyed (last lows today and the 38.2%-50% of the days range). Failure to get above would keep the sellers in control. Testing the MA line now. Buyers leaning with stops on a break...
On the daily chart, the fall has put some cracks in the move higher (we did make new highs going back to June 2015 on the move higher). The price is below the 50% of the move down from the April 2015 high (at 0.6935). The price is also below the prior swing highs from the end of March and the from last week (at 0.6965 and 0.6952). If support here holds against the 200 hour MA, getting above those levels will be the next challenge.
Sitting on the edge at support. Will the dip buyers be rewarded or will the sellers prevail.