The 200 hour MA comes in at 0.6309 level currently.
The NZDUSD rose after the RBNZ decision but ran out of momentum near the 50% retracement and rotated lower - partly helped by a stronger USD.
The run lower took the price back below the 100 hour MA (blue line) but it also stayed above the swing lows from Monday and last Friday. Staying below the 100 hour MA would be key.
Well, RBNZ's Orr was back on the wires today and his comments were less dovish than traders wanted.
The price moved back above the 100 hour MA (blue line) and the price stayed above that MA level. The restest and holding (traders leaning against the level), gave buyers more confidence. The price moved higher and back above the 200 hour MA (green line).
The 200 hour MA is now support for the pair in trading today. Stay above and the correction has the potential to continue. The next upside target comes in at the 38.2% retracement at the 0.63292 level. On Tuesday and again yesterday, the price found sellers in the area (it sandwiched the run to the highs). Get above would be more bullish.
Getting above the 100 and 200 hour MAs is a result. Staying above makes that result better of course. If the buyers are to keep the control, watch what happens against those levels. A break below the 200 hour MA, muddies the bullish waters. A move back below the 100 hour MA, ruins the bullish bias.
