Trend line below. Ceiling above.
The NZDUSD moved lower in early Asian trading and in the process fell below the 100 hour MA but not far away was a lower trend line . That line held and the recovery was on.
The move higher just moved toward the high swing area at 0.6870-73. The high from yesterday and last week stalled in that area. Going back to Feb 26/27, the pair tried to use that level as support, but was broken (and the price ran lower).
So sellers are leaning against the level on the test. I would expect stops on a break above.
Drilling down to the 5-minute chart, the pairs run higher has seen small dips below the 100 bar MA (blue line) on corrections in the London session. If the high is in place, sellers would like to see that 100 bar MA (at 0.6859) and then the 200 bar MA (green line at 0.6855) would tilt the bias even more to the downside. The 38.2% and 50% of the move up would also come in in that area.
The GDT auction results is scheduled to be released today (soon). Recent impact from the auctions have been muted but you never know. The last auction saw prices rise by 3.3% (see the results and the recent trends which are showing higher prices).
