The New Zealand dollar rose against the US dollar during today’s trading, supported by improving employment expectations and risks to flows after the Bank of Japan said it does not need to tighten monetary policy if markets are unstable.
The move to the upside has lifted the price above the 100-bar moving average on the 4-hour chart, and has led to a 38.2% decline from the July high near 0.5965. The price has also moved above the 50% midpoint and natural support near the 0.6000 level. This is now a nearby support.
On the upside, the pair is approaching a key set of technical levels including:
- 200 bar moving average on 4 hour chart at 0.60317
- 61.8% retracement of the move down from the July high at 0.60367
- 100 day moving average at 0.6037
The area between 0.60317 and 0.6037 is expected to attract sellers who will use stop losses on a rise. Be careful.