100/200 day MA at 0.70938
The price of the NZDUSD it is higher on the day but consolidating below the session highs in of 0.7073. The current price is trading at 0.7069.
However, looking at the hourly chart, the pair yesterday raced higher on the back of much stronger than expected employment data in New Zealand. The high price reached 0.7087. That was about six pips short of key 100/200 day MAs. Today those moving averages are converge at 0.70938. KEY, KEY level going forward.
The sellers off the high yesterday saw the price move back down toward the 38.2% retracement of the rise higher this week. That level comes in at 0.70355. Holding near that level, kept the correction to the “plain vanilla” variety. That keeps the buyers more in control.
The big question as can the pair get above the converge 100/200 day moving averages. That level is very important from a technical perspective. Get above the buyers can probe higher (the bias also turns more positive/bullish). Stay below and traders will start looking at the level as a potential peak.