NZDUSD reaches 200 day MA target and backs off on the test

Technical Analysis

Author: Greg Michalowski | nzdusd

NZDUSD finds some sellers against its 200 day MA

The NZDUSD has moved higher for the 3rd day in a row today. In the process, the price has extended up to its 200 day moving average at 0.65401. Sellers leaned against the level and the price currently trades at 0.65285 (see green line in the chart below). The price has not traded above its 200 day moving average since July 24, 2019. On Monday, the price moved above its 50% retracement of the move down from the July high at the 0.64966. That is now a risk level for longs from the daily chart.

NZDUSD finds some sellers against its 200 day MA
Drilling down to the hourly chart, the run higher over the last few days started on Friday at 0.64086. Overall, the move has taken the price up about 131 pips since the Friday low. There was a correction into today's trading, but the low could not extend below the natural 0.6500 level. Buyers returned and made a run toward the 200 day moving average.

With the price stalling against that key moving average level, sellers can lean stronger against it with stops on a break above. Sellers would gain a little bit more confidence on a break of 0.6519. That was the close from yesterday's trading. Closing lower would break the 3 day up string. Below that,  getting below the 0.6500 level would have traders targeting the 38.2% retracement at 0.64896 and then the rising 100 hour moving average at 0.6475.

NZDUSD on the hourly chart needs to get below the 0.6519 level - the close from yesterday.

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