Pair runs above 50% retracement
The NZDUSD is another pair that snapped out of its non-trending range (see EURUSD post here). For the NZDUSD, the pair was mired in a 75 pip trading range over the last nine or so trading days. The price moved above that level in Asian trading today, and ran to the upside. The price has now moved above the 50% retracement of the move down from the March 18 high. That level comes in at 0.71047. Close support is now is between 0.7098 and 0.71047. Stay above keeps the buyers/bulls in firm control.
On more upside momentum, traders will look toward the old floor between 0.7130 and 0.71344. Just above that is the 100 day moving average at 0.713898. The price moved below the 100 day moving average back on March 23 (at 0.7109 at the time), and proceeded to trend down over the next few days to the 2021 low price of 0.69405.
Non-trending transitions to more of a trending market. The pair yesterday got the trend going on the break of the 100/200 hour MAs ant the pennant (it was sloppy at first, but started to gather upside momentum into the close). From the MAs, the range has been 85 pips. That is higher than the 75 pips seen over the previous 9 trading days.
If you want to learn more, read the post from yesterday. Trading is about being anticipating and taking clues from the price action.
