NZDUSD price bounces back toward the 200 hour MA
The NZDUSD is seeing a rotation back to the upside in trading today and is getting some added low from some modest dollar selling over the last hour or so.
Looking at the hourly chart, the move higher in this pair started in the Asian session after the pair moved down to test the 61.8% retracement of the move up from the July 28 low at 0.69703 (and found support buyers). The low for the day reached 0.69678 and bounced.
The move higher has now seen the price move back above the 50% midpoint at 0.69926 and get close to the still rising 200 hour moving average at 0.7013. The high price reached 0.70102. The current price is trading at 0.7005.
What now ?
Intraday, watch the 50% midpoint down to 0.69875 for support clues. Hold above that, and the intraday bias remains tilted to the upside.
Move above the 200 hour moving average, and traders would next look to crack the 0.7018 tp 0.7020 area followed by the falling 100 hour moving average at 0.70254. All those levels would need to be broken to increase the bullish bias
Recall from last week, the NZDUSD moved higher after much stronger than expected Australian employment (the two currencies often follow each other), and New Zealand announced that they would look to tighten lending restrictions for homebuyers in an attempt to slow that markets gains.
That helped to move the NZDUSD above a swing area between 0.7018 and 0.7020 ceiling and race toward the near converged 100 and 200 day moving averages near 0.70906(see blue and green lines near the top of the chart above). The high price stalled just ahead of that area at 0.70873.
The price fell below its 100 hour moving average on Friday, but held near the 200 hour moving average (US jobs day). In trading yesterday the pair traded above and below the 200 hour moving average, ultimately closing below the level and near the 50% midpoint. Today's fall and bounce off the 61.8% retracement level, is indicative of a market that is trying to decide higher or lower.
Watch 0.69875 below as support, and the 200 hour moving average above at 0.7013 as resistance, with a break of either extreme likely leading to increased momentum in the direction of the break.
