The price is grinding to a near halt as support and resistance converges
The NZDUSD remains stuck in an up and down trading range. The last 7 trading days has waffled in a 75 pip trading range with 0.7069 above and 0.6994 below. More recently, the price is grinding to a near halt as support and resistance converges. The 100 hour and 200 hour MA are near converged at 0.7026 to 0.7037. Above and below the MA are rising and falling trend lines at 0.7016 below (and moving higher) and 0.7046 above (and moving lower). The spread between those lines is only 30 pips.
Needless to say, the spring is getting tighter in the pair. The price is not going to sit here trading around the MAs or below or above the pennant trend lines. Something has to give. Traders will be looking for the break and run.
With the price action up and down, it is telling traders that it does not know which way the price will be going (otherwise it would be more trending). What we have seen instead is buyers buying dips. Sellers selling rallies. So look for the catalyst. That may just come with the price action and then the market will fit a story. So be aware. Know the levels and look for the break…..