Price below 100 day MA.
The NZDUSD fell sharply yesterday after the RBNZ surprised the market by switching their bias to lower rates. The price fell below the 100 day MA at 0.6808 - closing below that MA for the first time since March 8th.
Today, the price moved to a new since March 8th at 0.6779 in the Asian session, but rebounded higher. That move did take the price back above the 100 day MA for about 6 hours, before moving back down.
The fall in the London/NY session took the price all the way back to the early day low at 0.6779 and stopped. A double bottom has formed.
We currently trade at 0.6788 - not far off those lows. The 100 day moving average remains a barometer above. Stay below, the sellers are in control.
If the double bottom is broken, there is room to roam. Looking at the daily chart below, the 38.2% of the move up from the October 2018 low comes in at 0.6760. Below that the 200 day MA is at 0.6733, a lower trend line at 0.6720 and the 50% of the move up comes in at 0.6696 (call it 0.6700). All those are doable targets and levels that have been traded in 2019.
Sellers in charge. There is room to roam with the price staying below the 100 day MA..
