The NZDUSD is trading below and away from it's 200 day MA at 0.69041 (see green line in the chart above). The price is trading at 0.6885 currently. The price in the NZDUSD is also testing the broken 38.2% of the move down from the 2021 high at 0.6886. Moving and staying below that level would give sellers more confidence on the daily chart.
Close risk for sellers who are looking for more downside is now the broken 200 day MA. Stay below keeps the sellers happy and comfortable on the break. Move back above and that comfort starts to ebb.
Drilling to the hourly chart below, there is additional support that is holding up the decline for the NZDUSD on the first test.
Looking at the hourly chart below, the price decline in the NZDUSD today, has also taken the NZDUSD to the 50% midpoint of the move up from the March 15 low. That level comes in at 0.68806. The low today just reached 0.6882 - just above that level.
The combination of the broken 38.2% retracement on the daily chart and the 50% midpoint on the hourly chart between 0.68806 and 0.6886 is giving traders cause for pause. There may be buyers against the level (profit taking?) but would expect stops on a break with momentum below the level.
Sellers who are looking for more, would still need to see the levels broken and remain broken.