Back below 200 hour MA but above trend line break
The NZDUSD based against the 100 hour MA for the 2nd day in a row in the Asian Pacific session (blue line in the chart below) and that led to buyers taking the price higher. More favorable stock markets in Europe and the US (so far) have helped with the "risk on" buying as well.
The move higher took the pair above a topside trend line to the 200 hour MA (green line). On the first test, the MA held and the price came off. However, the last 3 hourly bars breached the level and there was some follow through buying up to the day highs at 0.6797. The move above the trend line and the above the 200 hour MA was the first since June 14th.
That's the good news for the buyers.
The not so good news is the break of the 200 hour MA may be failing.
The price is currently back below the 200 hour MA (trades a few pips below), but above the broken trend line. So there is a battle going on between the buyers and the sellers (the trend line comes in at 0.6771). That is somewhat normal -especially after so much time below the 200 hour MA.
IF the trend line holds, on the dip, the buyers from the 100 hour MA below, the buyers might still feel ok. If the trend line is broken, however (or if there is another failed move above the 200 hour MA that can't push higher), the selling should resume. PS. the next upside target is at the 50% retracement at 0.68039. A move above should open more bullish doors for the pair.
