Be aware. 100 day MA and swing highs being approached in the NZDUSD

The NZDUSD got a kick higher earlier in the day after the Bank of China announced that they would lower the reserve requirement.

Technically the price moved above its 100 hour moving average (blue line in the chart above) and found additional momentum to the upside.

The initial high price in the early European session, moved up to test the 100 day moving average (high blue line at 0.6260), but backed off modestly. The rally off the corrective low has moved back toward that key 100 day moving average. The high price reached 0.62593. The 100 day moving average Moving average A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot Read this Term is at 0.62603. Also nearly 100 day moving average is a swing area between 0.6250 and 0.62639, and the high prices from earlier this week.

Needless to say there is some key resistance up to 0.62639. A break above would increase the bearish bias.

Of course, the resistance is resistance for a reason. The highs from the past and the 100 day MA, are seeing sellers near the area as risk can be defined in risk be limited against the area. If the price does stall the rally once again, a move back toward the 50% midpoint of the February trading range at 0.6236. Move below that level and a rotation lower cannot be ruled out. The 100 hour moving averages rising and currently at 0.62079.

Helping the upside is lower interest rates. The US two-year yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term is now down near 21 basis points at 3.9208 %. The 10 year yield is down 20 basis points at 3.3838%. That is clearing closer to the low price from yesterday's trade at 3.369%. The price subsequently rallied up to a high of 3.59%.

The probability of a 25 basis point hike next week is now 71% while 29% expect no change in rates.

Not helping the currency is the potential for risk off flows to kick in. So far that has not happened but US stocks are now near low levels with Dow Industrial Average down -165 points or -1.44%. The S&P is down -53 points or -1.36% and the NASDAQ index is down -140 points or -1.20%.