100 hour MA being tested
The NZDUSD as move down to retest its 100 hour moving average at 0.72213. The pair moved back below the Monday swing high at 0.72424 and picked up downward momentum on “risk off” sentiment (stocks lower/yield higher).
A move below the 100 hour moving average would have traders looking toward the 200 hour moving average currently at 0.72031. Call from yesterday, the price low bottom against that 200 hour moving average and raced higher. Back on April 22/23, the pair also approached the 200 hour MA only to have buyers leaning ahead of the level.
The NZDUSD that is not traded below its 200 hour moving average since April 13 at 0.7032. The subsequent rally took the price to the high today of 0.72859 before the correction lower started…
Drilling to the five minute chart below the price action started a ceiling yesterday between 0.7264 to 0.7266. The move higher in the Asian session that the price up to 0.72859. However, after moving back below the level and bouncing between another swing area near 0.7242 to 0.72464 (see green numbered circles), and that old ceiling (see red numbered circles in the chart below), the sellers push lower toward the 100 hour MA. Traders will now watch the lower swing area as resistance (it also corresponds with the 50% of the last move lower at 0.72434).