Makes new lows today but momentum stalls
The NZDUSD saw the price move sharply lower on Tuesday and Wednesday. Today, there was a push to another new low - and we are down on the day (closed yesterday at 0.7222) - but that low found buyers against the 50% of the move up from the May low. That level comes in at 0.71874. The low today bottomed at 0.7191. Close enough.
Holding the 50% gives shorts a little cause for pause. At the least, it earmarks the level as a more important risk level for dip buyers, and target level to get through for the sellers. Another level to eye as well is at 0.7201. That was the low from June.
Can we expect a correction higher now?
Drilling to the 5-minute chart currently, there is some caution still in the buy the dip idea even though the price held the 50% and is also back above the 0.7201 (low from June). That caution comes from the selling against the close from yesterday at 0.7222 and a downward sloping trend line. Those levels held and as a result, give the buyers some pause as well (see chart below).
So overall, the market is more neutral. Traders can go long or short. Risk for buyers is at 0.7201 and 0.7187. Risk for sellers close by comes against the 0.7222.
On a break of either extreme, traders will be looking for a pick up in momentum.
