To tighten lending limits. Omits the word "unjustified" when describing the NZD level
The NZDUSD fell then rose after headlines from the RBNZ Financial Stability report. The RBNZ tightened lending limits to slow the overheating housing market. They said that the NZ dollar was above sustainable levels but did not include the word "unjustified" when describing the value of the NZD. This led to a snap back rally in the NZDUSD.
Techically, the price of the NZDUSD fall to the lowest level since March 18th at 0.7317 - taking out the lows from yesterday and Friday by a few pips (at 0.7327). The current price is back higher, with the price trading near higher levels from yesterday's trading (see 5 minute chart above). The pair traded higher and lower in trading today with little directional trend . The price is currently above the 50% midpoint of the range at the 0.7359.
Looking at the hourly chart, if the price is going to head higher, the 38.2% of the move down from the Friday high come in at 0.73867. The 50% is at 0.7408 and the 100 hour MA is at 0.7419. Each become upside targets.
Of most importance on any rally, would be the 100 hour MA ( line in the chart below). The price of the pair has been tracking below the 100 hour MA since falling below it on April 30. Each test has found sellers. Needless. to say, staying below that MA keeps the bears in control (i.e., look for sellers to sell against it on rallies with stops on a break above.
The price remains supportive but so far contained.
