The NZDUSD has moved higher today, helped by hopes for more Chinese stimulus going forward. The earlier move higher did see the pair extend above the 100 hour MA (blue line), but found sellers near a swing area between 0.61909 to 0.61966. The inability to extend higher has led to up and down price action between 0.6166 and 0.61946. In between sits the 100 hour moving average at 0.61832.
Going forward it would take a move back above the 100 hour moving average (and stay above) at 0.61832 to give the buyers another shot at the swing area up to 0.61966. Move above that level and traders start to target the 200 hour moving average at 0.62119. The price last traded above the 200 hour moving average back on June 28.
Taking a broader look at the weekly chart, the move lower this week took the price to the lowest level since the May 24, 2020 trading week. The low price last week reached 0.6147. The move higher today has helped to push the price back above that level. The pair still remains below the 61.8% retracement of the trading range since the 2020 low. That level comes in at 0.62298 and would be a target to get back to and through if the buyers are to start to take back more control.
On the downside on the weekly chart the pair will target a downward sloping trend line at 0.6096 (and moving lower) if the buyers are not able to extend above the aforementioned topside targets on the hourly and weekly charts.
For now...watch the 100 hour MA. Get above, and the other targets can be eyed.
