The NZD is the strongest of the major currencies, while the GBP is the weakest. That combination has the GBPNZD as the biggest mover on the day. The pair is down -1.08%.
Looking at the 4 hour chart, the run to the downside got started after a run higher yesterday. That move took the price to a topside trend line where sellers stuck a toe in the water against the trend line.
The subsequent move to the downside over the last eight 4-hour bars has seen the price move below an:
- Upward sloping trendline, the
- 100/200 day moving averages near 1.9288, and the
- 100 bar moving average and 50% retracement near 1.9250
What the pair could not get below is the 200 bar moving average on the 4hour chart. That comes in at 1.91724. The low price reached 1.9174. The current price is trading at 1.92216
What next?
The price currently trading between the 50% and 100 bar moving average above near 1.9252, and the 200 bar moving average below 1.91724.
Traders will be watching those levels for the next bias clue.
Note that back on February 16 and February 17, the price bottoms against the 200 bar moving average on each of those days. So this is the third consecutive test of the moving average line, and the third consecutive bounce off of that moving average. That has given the buyers the courage to stick their toe in the water against that key level.
