Break below the 100 day MA in jeopardy of failing
The NZDUSD cracked below its 100 day MA today in the Asian session and after a retest of the MA line, moved lower with more downside momentum.
Recall from last week, the price bounced off the MA level. Back on October 8th, the pair also tested the level and bounced. The failure today was therefore a significant break to the downside.
However, the run lower could not reach the swing low from October 8th and has gotten a lift back higher on the back of more "risk on" buying. US stocks are trading near new session highs, and yields are also higher as investors worry less about the safety of treasuries. That has lifted the NZDUSD as well.
In the NZDUSD, the price has moved back above the 100 day MA at 0.65843, and with the move shifts the bias a little more to the upside.
There is still some work to do to take more control from the sellers. The 50% retracement of the range since September 24 comes in at 0.65963. That is the next target. Above that are the falling 100 hour moving average and 200 hour moving averages. They currently come in at 0.66097 and 0.66236 respectively.
