And a pretty decent floor in 0.67129-0.6723
The NZDUSD in trading today, moved higher off a two day floor at 0.6723. However, that run higher stalled at the 100 hour MA and stalled. The price has backed off and trades in the middle of the day's trading range.
With the 100 hour MA stalling the rally, that MA line remains a key level to stay below for the bears. Stay below is more bearish. Move above and the bearish waters get a little more muddy.Look for more upside corrective potential.
ON the downside there is number of levels, relatively close together, that has stalled falls.
- The 0.67235 lows from yesterday and today and August 3rd (see green circles) is one level.
- The 0.6719 was a swing low from July 20 and August 3rd.
- The swing low from July 19 was at 0.67129.
So 0.67129 to 0.6723 (about 10 pips) is a support area (yellow area). A break below increases the bearish bias.
So for 3 or so days, the move lower has consolidated. That allowed the 100 hour MA to catch up to the price. That is resistance. ON the downside, the support floor has been solid.
There will be a push at some point, but the battle lines are defined.
Fundamentally, in the new trading day tomorrow in New Zealand, the inflation expectation for the quarter will be released and on Thursday, the RBNZ will release their most recent statement. Also, China will release their trade balance numbers which has the potential to impact the NZD as well. So there is news that could easily push the price outside the battle field.
