The NZDUSD has been mired in a 62 pip trading range
The NZDUSD is trading at a new high for the day and in the process has moved into the upper swing extreme that has confined the pair over the last five trading days. That extreme comes between 0.69587 and 0.6969. A move above the upper extreme would take the price outside of its narrow 62 pip trading range seen over the last five trading days.
At the low, the price has found support at 0.69075. Today's low soon after the CPI data, reached 0.69106 before rotating back to the upside.
Between the extremes sits the converged 100 and 200 hour moving averages at 0.69369. The price has traded above and below those moving averages over the five day period. Buyers and sellers are battling it out.
Although the price still remains within its range, the buyers are making the play on the move back above the hourly moving averages. At some point the confined trading range will be broken and healthily leads to a momentum move in the direction of the break.
Recall that last Tuesday, the Reserve Bank of New Zealand raise rates by 25 basis points as expected. The price high moved up to test the 38.2% retracement of the move down from the September 3 high at 0.69763 as well as the swing high from October 4 at 0.69809 (the high reached 0.6979). Buying stalled and the selling took the price all the way down to a low of 0.6877.
The confined range over the last five days has remained between the extremes from that day at 0.68762 and 0.6979. If the price extend higher or lower, getting to and through those extremes will also be targeted.
