- The USDCAD moved below (lower USD) its 100 hour moving average and targets its 200 hour moving average (see post here).
- The AUDUSD moved above (lower USD) its 100 hour moving average and targets its 200 hour moving average (see post here)
The 3rd of the so called commodity/risk-on currency pairs - the NZDUSD - is following the same pattern. For it, the price has moved above its 100 hour moving average at 0.56649 and looks toward its 200 hour moving average at 0.57225. Get above its 200 hour moving average would be its 1st break since September 13. Back then, the price was at 0.6086. The low price last week reached 0.55638, a decline of 522 pips or -8.58%. That's a big move in less than 3 weeks of trading.
The pair was oversold, but the price is still needed to get above some upside technical levels to give buyers some added comfort. Getting above the 100 hour moving average was step 1. Getting above the 200 hour moving average would be step 2.
Move above those levels and the high price from last week at 0.57537 and the 38.2% retracement of the move down from the September high at 0.57916 would start to take the pair out of the bearish hole.
Failure to get to and through these levels, and a rotation back below the 100 hour moving average would keep the sellers firmly in control.
The Reserve Bank of New Zealand meets on Wednesday, and is expected to raise rates by 50 basis points once again to 3.5% from 3.0%. The expectations are that they would raise again in November to 4.0%.