The NZDUSD has reached a new low for the day at 0.64511. That has taken the pair to the lowest level since July 2020. It also moved below a swing area between 0.6488 and 0.6529 (see yellow area in the chart above), and the 50% midpoint of the move up from the 2020 low at 0.64655.
The current price trades at 0.6469, just above that midpoint level on a rebound higher off the lows.
Yesterday recall, the low price took out the low price from earlier this year (from February), but only by a couple pips (see post from yesterday here).
That low came in at 0.65267. The high price off the bounce took the NZDUSD up to 0.6563.
Looking at the 5 minute chart below, that corrective high price yesterday afternoon saw the pair retest its 100/200 bar moving averages (blue and green lines). Sellers leaned against those levels and pushed lower in the Asian session today reaching down to 0.64707 – just above the 50% midpoint at 0.64655.
The price did spike higher off of that 50% level (see the 5 minute chart below) and in the process even extended above the 100 and 200 bar moving averages and the low from yesterday. However, momentum could not be sustained and we have since seen the rotation back to the downside into new session lows.
The current 100 bar moving average comes in at 0.64897. The 200 bar moving average comes in at 0.65031. Getting above both those levels - and staying above- is required to give the dip buyers some hope that the test of the 50% was good enough for now. Absent that, and the sellers remain in control.