Seeing a bounce of the key MA level on the 1st test.
The NZDUSD stalled at the 200 day MA at the lows today, and we are seeing a bounce. The pair has been under pressure this week after comments from RBNZ Wheeler that the NZD was still too high (early yesterday).
The price has not traded below the 200 day MA since early June 2017.
The fall to the MA line today saw the pair move below the 50% and 100 day MA earlier in the day at 0.71874 and 0.71825 respectively. It also fell below a floor area from back in June and July (lower yellow area).
On the wide, the range is now defined by those levels.
Drilling to the 5-minute chart, the pair has rebounded above the 100 bar MA on that chart at 0.7150 (blue line), but remains below a topside trend line and the 200 bar MA (at 0.71673).
For the dip buyers against the 200 hour MA (at 0.71304), they would want to see the trend line and the 200 bar MA broken (green line below) to signal a more bullish intraday technical bias.
Failure to do so (watching the 100 bar MA now for support at 0.7150), and a break below the 200 day MA cannot be ruled out (look for stops below the 200 day MA line).
