The NZDUSD is trading to a new low and in the process is moving below the 50% of the move up from the July 14 low.
The move lower comes despite a 50 basis point hike by the Reserve Bank of New Zealand to 3.0% (the highest since July 2015). The high price for the day reached up toward resistance near 0.6383 which was a swing low on Thursday, and near a swing corrective high on Monday (see red numbered circles).
The market swung around violently after the rate decision. However, ultimately, sellers took control on a final rotation back below the 200 hour moving average, and the swing area between 0.6303 and 0.63153. More recently the pair has broken below another swing area between 0.6272 and 0.62797.
The 50% is the next level to be broken and there is some up and down aruond that level at 0.62638..
Overall, there has been a lot of downside levels that have been broken. The selling - especially on the last break back below the 200 hour MA (green line) - has been consistent.
Looking at the 5 minute chart below, the sellers are evident AFTER the last break below the 200 hour MA. The falling 100 bar MA on that chart comes in at 0.62915 (and moving lower - blue line). That MA will be eyed on a rebound for clues that the market is turning more neutral. Stay below is more bearish in the short term.
Meanwhile if the price can continue to move below the 50%, the next key target area comes between 0.6212 to 0.62168 and the 61.8% between that area (at 0.62638).
