The NZDUSD yesterday moved to the highest level since January 19 after the RBNZ hiked rates by 25 basis points, and said that it was a close call to raising by 50 basis points. It was the 3rd hike in a row and more are expected going forward.
The high price reached 0.68087. That tested swing highs going back to January 18, January 19, and January 20 near that level.
Since reaching the high, it’s been downhill run ever since with a small pause after the pair broke below its 100 hour moving average (blue line) earlier today currently at 0.6727.
After falling below that level, the price conosolidated, and corrected higher, retesting the moving average. After sellers leaned against the level, and ultimately pushed the price below the 200 hour moving average (green line currently at 0.66936), the selling intensified. Strong dollar buying helped the flows.
If a bottom is in (at least temporarily), w all hat would give the dip buyers some added comfort?
The 0.6659 to 0.66669 area would be an area to get to and through. The lower level represents a number of swing lows and swing highs (see green numbered circles). The higher level is the 38.2% retracement of the 2022 trading range. Get above each would give the buyers some breathing room and additional comfort.
Absent that, and the sellers are more in control. The aforementioned swing area between 0.6622 and 0.66313 would be the next target to get to and through. Move below that and traders would target a lower swing area between 0.6588 and 0.6595.