The NZDUSD had a rollercoaster ride today with the pair reaching a new low for the year (but only by 3 or so pips). That low took out lows from April and July. After failing on the brake, the price rocketed higher, erasing all the declines and trading higher on the day. At the high the pair tested the falling 100 bar MA. The high price got within 4-5 pips of that level before rotating back down. Recall from Friday, that MA was also tested – finding willing sellers against the level.
The move lower has now taken the price between the 100-hour MA above (blue line on the chart below) at 0.5938, and the 200 hour MA below (at 0.5917). That area is more neutral. Traders are waiting for the next shove.
Overall, however, with the topside holding below the 100 bar MA for the 2nd consecutive week, the sellers are holding to the small advantage technically.
This article was written by Greg Michalowski at www.forexlive.com.
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