Up and down
The NZDUSD is moving up and down and in the process is trading above and below its 200 day MA at 0.67538. Usually, the 200 day MA is a point of deflection or reflection. That is the price bounces off of it and races through it. When the price trades above and below it, the market has reached a level of equilibrium but is not sure which way to go. The 200 day MA is a long term "take a breathe and regroup level".
The price action over the last three days has confined the range between 0.67288 and 0.6773. That is not a lot of range over a three day period. Eventually, there will be a break.
The sellers are pushing the lower extreme now with a retest fo the low from Friday at 0.67288. The lows over the last 3 hours has ranged from 0.67298-318 - just above that low. Buyers are leaning, but I would expect stops on a break.
ON the topside today, the highs stallyed near the Thursday high at 0.67712. The high prices today reached 0.67726 and 0.67714.
In between sits the 200 day MA at 0.67538,
- Dip buyers can buy at the low with a stop below
- Sellers can lean against the 200 day MA and hope for a move through the low. Alternatively, sellers can wait and sell against the ceiling with a stop above.
- Traders waiting for the push below or above, can wait for the break and jump on the break with hopes for more momentum.
