The NZDUSD fell to a new low for the year on Monday on the back of the sharp fall in the Nikkei 225 (-12.4%). However, that new low only took out the April 2024 low by a few pips, and the price snapped higher.
The momentum stalled near highs from last week nearly 0.5982 and after a run back lower on Tuesday found support near its 200 hour moving average, the price resumed its run to the upside extending toward the following 200 bar moving average on the 4-hour chart, and its 100-day moving average. The 61.8% retracement of the move down from the July high was also near its 100 day moving average at 0.6037
In trading today, the price stretched higher reaching a new high for the week at 0.6034 just short of the high technical targets. Buyers shifted to sellers as they leaned against the key risk defining level.
What next?
The rotation lower, has gotten close to the 50% midpoint and the natural support at 0.6000. That is the next target that needs to be broken to give the sellers more confidence. Absent that and going forward, the boundaries are set with the 100 day MA/61.8% at 0.6037 as resistance, and 50% midpoint at 0.60000 as support.
Traders can lean or look for the break of either extreme.
