The NZDUSD is trading near session lows and in the process is testing its converged 100 and 200-day moving averages near 0.6068.
When both the 100 and 200 day moving averages are converged, it represents a key risk/bias defining level for both buyers and sellers.
Moving below with momentum and traders will target the 50% of the trading range since the mid-April low at 0.6036. Moving below that level increases the bearish bias even more.
Conversely, stay above the 100/200 day moving averages and a bounce back rally toward the high from today and the high from last Thursday at 0.6108 would be the key target. Get above that level and traders would look toward 0.6125.
This article was written by Greg Michalowski at www.forexlive.com.
Source link
