Forex technical analysis: Ups and downs continue for the NZDUSD
Stalls near a bunch of technical stuff.
The NZDUSD price action has not been all that great. There have been some momentum moves, but there are a lot of ups and downs that make up those moves. When you think it is breaking higher, it reverses and goes lowers. When you think it is breaking lower it reverses and goes highers.
Looking at the hourly chart below, the pair has move sharply lower over the last 4 or so hours. Thar break lower saw the price fall below and stay below the 100 hour MA at 0.72677. Move below the 38.2%.
The next targets under the 38.2% are actually a bunch of stuff. Between 0.7219 and 0.72334 are:
- 50% retracement at 0.7233
- 200 hour MA at 0.7230
- 100 bar MA on the 4-hour at 0.7228
- An old downward sloping trend line at 0.7223
- An upward sloping trend line at 0.7219.
The low extended to 0.72194 and we are seeing a rebound back up toward 0.72334. A move above that level would give the dip buyers against the cluster of levels some hope that the bottom is in with the broken 38.2% at 0.72579 the upside target (who knows, maybe it retraces all the way to the highs again).
On a break below the cluster, and that 100 day MA at 0.72046 will become the focus.
For now, look for patient dip buyers against 0.7219 (with stops below).