Trades at session highs. Risk is limited for a correction.
The NZD is the strongest currency today and the NZDUSD has moved up over 1% on the day (up 1.07% vs the USD today).
Technically, the pair has been tracking higher and higher with modest corrections.
If you look at the 5-minute chart, the pair has tracked above the 100 bar MA. Since breaking above in the Asian session, there have been two tests of that MA line. One in the early European session. The other in the NA session. Each found buyers.
For those long, and riding the move higher, that MA is now a risk level. It comes in at 0.66734 and moving higher.
On the topside, the pair is up testing a topside trend line. That comes in at 0.66887. IF you are looking for an area to sell against with limited risk, this is an area. Risk is defined and limited.
Taking a broader look at the daily chart, the pair is also testing early July swing lows at 0.66865. That low held until August 9th when the level was broken. The price did go above at the end of August but came back down at the end of the month.
There is reason to trade a quick correction. I don't expect the pair to go far, but it could go down and test the 100 bar MA on the 5 minute (and perhaps to the trend line). Risk is limited.
