Looks toward the 38.2% and 100 hour MA
The NZDUSD rallied higher this week after basing against its 100 and 200 hour MA on Monday and Tuesday. That floor gave traders the go ahead to run higher and they took the price sharply higher on Tuesday and and continued the run higher on Wednesday.
Today, however, the pair eked out a small the high for the week at 0.66892, but found no momentum buyers. The buyers turned to sellers and the price rotated back down toward the swing low from yesterday near the 0.66313 level early in the New York session.
Since that time the price has retraced higher and back down. We are currently breaking back below the 0.66313 level and approaching a combination support area defined by the 38.2% retracement of the move up from the July 14 low at 0.66177, and the rising 100 hour moving average at 0.66151. A move below both those levels would open the door for further downside with the swing highs from July 9 and July 13 at 0.6599 and 0.6593 as the next target (the 50% retracement of the same move higher is also at that area).
It’s been a good week for the NZDUSD. However the risk off flows today seem to be taken some of the shine off the bullish momentum.