100 day MA and 38.2% retracement hold support today.
Yesterday the Dairy auction prices helped to send the NZDUSD to the next key support target at the trend line. That level held support (see post).
Today, the pair was presured through that line but found support buyers near support (funny how that happens) where the 100 day MA and the 38.2% retracement converged at 0.6579. The buyers came in and again we are seeing a modest bounce.
Given a chance and a "reason" or two to trade (Like the trend line. Like the 100 day MA and 38.2% retracement), traders will lean against those "reasons" for a low risk trade. The reason it can work, is risk can be defined and limited.
You may not have been the dip buyer today in the NZDUSD, but you may be the buyer or seller against a level tomorrow in the EURUSD, the GBPUSD, the USDJPY, the AUDJPY, etc. that gets you great trade location and protects you in volatile, choppy markets. in the
