NZDUSD drops below 100 hourly. The seller takes control.
the NZDUSD
New Zealand dollar / US dollar
NZD/USD is a commonly offered currency pair that represents the New Zealand dollar or the Kiwi and the US dollar. The pair is known for dealing with a commodity currency, i.e. the New Zealand dollar, which helps attract risk appetite for forex traders. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as a carry trade, in part because interest rate differentials favor the New Zealand dollar. The New Zealand dollar is the seventh most liquid pair in the world at the time of writing, and the US dollar is the most liquid in the world.
NZD/USD is a commonly offered currency pair that represents the New Zealand dollar or the Kiwi and the US dollar. The pair is known for dealing with a commodity currency, i.e. the New Zealand dollar, which helps attract risk appetite for forex traders. Like its Antipodean counterpart, the Australian dollar, NZD/USD is seen as a carry trade, in part because interest rate differentials favor the New Zealand dollar. The New Zealand dollar is the seventh most liquid pair in the world at the time of writing, and the US dollar is the most liquid in the world.
Read this term It traded up and down during yesterday’s trading.
- The low of the day stopped against a sloping uptrend line.
- Today’s highs stopped inside the swing zone between 0.6258 and 0.6273.
The price high from yesterday (0.6272) has also remained below the 100-day moving average, currently at 0.6274.
In today’s trading, the upper sloping trend line was broken in the Asian session, but the buyers’ support headed for 100 hours. moving average
moving average
A moving average is a statistical tool used to smooth out short-term fluctuations in data and reveal long-term trends. It is calculated by taking the average of a given number of data points over a specified period of time, and then plotting that average as a line on the graph. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA). In the financial markets, moving averages are often used to analyze stock prices, exchange rates, etc.
A moving average is a statistical tool used to smooth out short-term fluctuations in data and reveal long-term trends. It is calculated by taking the average of a given number of data points over a specified period of time, and then plotting that average as a line on the graph. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA). In the financial markets, moving averages are often used to analyze stock prices, exchange rates, etc.
Read this term (the blue line in the above chart) and pushed the price back to the above swing zone (between 0.6258 and 0.6273).
The subsequent move to the downside initially found support against the 100 hour MA again, but was broken at the start of the US session as USD buying gained steam (helped by the Fed’s hawkish Logan comments). The break of the 100 hourly moving average was also a technical reason to sell the NZD/USD pair bearishly.
The decline took the price to a swing zone between 0.6202 and 0.6206 (just above 0.6200 natural support) The last four or five hours saw a consolidating trading range, with a high at 0.6218. The current price is trading at 0.62095.
What now?
A break below the 0.6200 area and traders will start targeting the lows reached last Monday and Friday near 0.61813.
Conversely, if buyers start to show more interest (buying limited so far), or if traders (including you probably) want to lean against 0.62000 (with 0.6200 stops), then a return towards the 100 hourly move would be the average at 0.6231 (and moving lower) is the target.