The earlier spike failed
Traders in the NZDUSD are making another play above its 200 day MA.
Earlier in the day, the price spiked above the MA level on it's way to the highest level since early August. Yesterday, the MA found sellers against the level. So it was not surprising to see increased buying on the break.
The correction lower into the New York session saw the pair stall ahead of its swing low from the end of day yesterday at the 0.65174. The low price reached 0.65191.
The rally off that low has now taken the price back above the 200 day moving average. It will be up to the buyers to now keep it above that level (need to overwhelm the sellers). If they can do that, the high price 0.65613 will be targeted.
Taking a broader look at the daily chart, the high price today did find sellers just ahead of the 61.8% retracement of the move down from the July high (see chart below) at 0.6565. That retracement level coupled with swing levels in the up to 0.6586 (see yellow area in the chart below) is the next target hurdle for the bulls. Get above and it opens up the door for further upside momentum potential.
