The NZD/USD pair fell at the start of the Asian session, and in the process found support from buyers against its 100-hour moving average. The price rebounded and moved towards its highest level from last Friday’s trading. This high level was stopped before its 100-day moving average and the 61.8% retracement of the move down from the July high to the August low. Both levels come in near 0.60365. In today’s trading, this moving average and the 61.8% retracement are back in close proximity with the high level reaching 0.60315. The sellers are back in favor.
So, with the 100 hour moving average holding support and the 100 day moving average halting the rise (resistance), the battle lines are set.
- A rise above 0.6037 will be more bullish.
- A move below the 100-hour moving average which is currently at 0.6001 would increase the bearish bias.
At some point, there will be a break of support or resistance targets. Look for momentum in the direction of the break.