At least it broke away from the 200 hour MA
The NZDUSD spent 9 hours trading above and below the 200 hour MA and the 50% retracement. The 10th hourly bar trader below both. The price must be going lower, right?. There is a change and it is to the downside.
Wrong.
The move lower could not reach below the lowest low of the 9 hourly bars (see chart above). The price reversed higher, raced above the 200 hour MA (green line), and did not stop until reaching a topside trend line (see earlier post). The stall is on as traders take profit against the trend line target.
Overall, the sellers had a shot. They blew it.
The buyers have done better but need to do more.
Taking profit at the trend line is not all that surprising. Risk can be defined and limited. For longs looking for more, your risk is the 200 hour MA. The target to "get to and through" is that trend line. On a break, look for momentum, with recent swing highs at 0.69066, 0.69115 and then 0.6929 as the targets. It it go further, a retest of last weeks highs at 0.6944 will be the place to go.
Needs to get above the trend line though.
