100 and 200 hour MA near converged between 0.72147 and 0.72192
The NZDUSD moved sharply lower yesterday and ended near the lows for the day. The pair was the weakest currency of the majors yesterday as traders entered risk pairs.
Technically the move down yesterday was helped by the break of its 100 day moving average at 0.71752. Once at level was broken with momentum, the price tumbled down toward the swing area between 0.71486 and 0.71549 (see red numbered circles). The low price reached 0.71476 – just a pip below the low of that swing area. Buyers leaned, and the price started to move back higher.
Today, the price moved back toward the 100 day moving average at 0.71752, and although the price traded above and below it in the up and down price action, the last 4-5 hours has seen a move back away to the upside, and a run toward the near converged 100 and 200 hour MAs. Those moving averages come in at 0.72147 and 0.72192. The high price of just reached 0.7216 and backed off. The price currently trades at 0.72055.
The buyers have reached an area of resistance. Sellers came and have so far put a lid on the pair against those MA levels.
Close support now comes in at the 0.7200 area. That is close to the 38.2% retracement and also a nice round natural support level (the earlier high for the day stalled against that level too). Stay above it and the buyers should make another run at the moving average levels. Move below and the bullish waters get a little bit more muddy and there should be more downside probing.