Price dives toward May 18 low.
The NZDUSD is fighting with the AUDUSD as the biggest changer on the day. Both are up 1.13% on the day.
The run lower today has seen a sharp decline in the North American session. Technically, that move gathered momentum on the break of the 0.72086 to 0.72118 area. That level had been near swing lows going back to lows on May 25, May 28, and yesterday. Earlier today, the initial low dipped below the 0.72086 level, rebounded back up to retest the 50% midpoint of the range since the May 19 low at 0.72317, before crashing lower.
More recently, the price has moved back below its 100 day moving average at 0.71774. The pair has also entered into the lower swing area between the swing low on May 9 13th at 0.71476 and the 0.71575 level. This area should give traders some cause for pause. However on a break, traders would next target the swing low from May 13 at 0.71344 and the May 4 low price at 0.71148.
Looking at the daily chart below, the price has dipped below its 100 day moving average a number of times in April and May but have only had four closes below that moving average line (13 dips below the MA line). If the price can stay below the 100 day moving average, the sellers remain in firm control.
