100 and 200 hour MA, 50% retracement
The NZDUSD took a tumble in the Asia Pacific session - falling down to a floor/ceiling area defined by recent swing lows/highs going back to November 6th (see blue circles). The low today extended briefly below that level at the 0.64977 level (the low reached 0.6492), but could not close below the line. The price rebounded back higher. The 0.6497 level can be characterized as a pretty good "Line in the Sand" on the downside. IF the price going forward is able to move and stay below, there should be a resumption of the downside bias for the pair. HOwever, the look below and failure today, has put the ball back in the buyers court. Are the buyers taking control? Well....a little... And
The subsequent rally has taken the price up to the 200 hour moving average (green line in the chart above 0.6519), where sellers have put a lid on the buying there. Also near the 200 hour MA now is the 100 hour MA (blue line in the chart above - currently at 0.65178) AND the 50% retracement of the move up from last week's low to last week's high price. That level comes in at 0.65159. So safe to say, the 0.65159-0.6519 is a topside "Line in the Sand" that will help define the bullish or bearish bias going forward.
SO with a "Line in the Sand" below at 0.64977 and another one above at the 0.6519, the market traders are waiting for that inspiring push that might get this pair jump started either to the upside or to the downside..
What is your preference? Are you a seller or a buyer?
