NZDUSD rebounds a little into the rate decision

Technical Analysis

Author: Greg Michalowski | nzdusd

9 of the last 13 days (including the last 4 in row) have been lower. Today the NZDUSD is higher

The NZDUSD has been moving lower since peaking on December 31 at 0.67549. The price reached a new 2020 low today at 0.6377, but is seeing a modest rebound ahead of the Reserve Bank of New Zealand interest rate decision in the new trading day.  

The price action has been down in 9 the last 13 days including the last 4 days in a row (today will break that string).  

9 of the last 13 days (including the last 4 in row) have been lower. Today the NZDUSD is higher
Technically looking at the daily chart above, the price fell below its 200 day moving average back on January 30 and after trading around its 100 day moving average (blue line in the chart above), moved up to retest that 200 day moving average last week. The pair was also testing the underside of a broken trend line at that level. 

Traders leaned against that level, and the price rotated back to the downside. As mentioned the last 4 trading days have been lower.

Off of the daily chart, going forward it would take a move back above the 100 day moving average at 0.64636 and the 200 day moving average at 0.64971, to tilt the bias back in the direction of the buyers.  Close risk off the daily chart might come in against the 0.6437 level (see green numbered circles).

Failure to move back above those levels, and with a move below the low-level today at 0.6377, traders will eye the swing low from November at 0.63195 followed by the early September swing low at 0.62694.

Drilling to the hourly chart below, the key levels on the topside through the interest rate decision would be the falling 100 hour moving average at 0.6425 currently and the 38.2% retracement also at that same level. Moves above those levels should solicit more upside momentum. The 200 hour moving averages at 0.64494, and the the aforementioned 100 day moving average at 0.64636 area, are other upside targets.

NZDUSD on the hourly chart
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