The NZDUSD moved higher yesterday with the dollar selling after the weaker than expected flash PMI data. The price extended above a swing area between 0.6212 and 0.62165 and the falling 100 hour moving average (blue line).
However, momentum above that area could not be maintained. The price rotated back to the downside. The gains on the weaker data have now been erased.
In trading today, the Asian session high stall near the swing area just above the 100 hour moving average. Later in the European morning session, the corrective high price stalled against the falling 100 hour moving average. That run to the upside was quickly reversed.
The pair is making a new session low and looks to test the swing lows over the last three trading days between 0.61557 and 0.6165. A break below that area opens the door for further selling.
Looking at the daily chart, the price of the last four trading days has been trading above and below the low of an old swing area between 0.6184 and 0.62122. The market is taking a pause. The current prices trading back below the low from that swing area. If the price can now stay below 0.6184, the sellers could make a run toward the lows reached in July. The 0.60989 is the next major target followed by the low for the year at 0.60599. That low was the lowest level since May 2020 during the early days of the Covid pandemic.
