Traders are trying to make up their minds
The NZDUSD in US trading, fell below the 200 hour MA (green line in the chart below) and an upward sloping trend line. That should have sent the price lower, but momentum faded and the price rotated back higher (see red shaded area).
Over the last few hours, the price has been reestablishing the MA and the trend line as support, but is not like there is lots of upside momentum. Nevertheless, traders will be looking for the price to stay above that MAsince/trend line and see if the price can take some bigger steps higher.
The next bullish clue would come from a break back above the 0.7344 swing area. The price had a number of swing lows over the last 5 or so days (see red circles). In trading yesterday, the price used that level as a ceiling after the break lower.
Getting back above will be a bullish signal (if it can stay above). At least traders who are leaning against the 200 hour MA will have another step in the bullish direction.
On more upside momentum in the new day, the 100 hour MA remains another hurdle to get and stay above (blue line in the chart above). That MA is at 0.73594 currently.
If the price moves back below the 200 hour MA and trend line, look for the sellers to make a stronger push with the 0.7321 level, the 38.2% retracement at 0.73155 and then the 0.7300 area as downside targets.
For now with the price confined below close support and close resistance, the pair may be a little more bullish on the failed break, but in reality, traders are sitting on the fence and looking for the next push.
