The NZDUSD has reached a new session high at 0.68887. In the process, the price has been able to extend back above a swing area between 0.68577 and 0.68658 (see red numbered circles and yellow area). The price is also moved back above its 100 hour moving average (blue line in the chart above) at 0.68645. That area is now close risk for buyers looking for more upside momentum. Stay below is more bullish. Move below is more bearish.
On the topside, the next target comes in at the 38.2% retracement of the move down from last week’s high at 0.68923. Better resistance comes against the combination of resistance from the 200 day moving average at 0.6901, and the 200 hour moving average at 0.6904. The dual moving averages and the natural level at the 0.69000 level, should give traders cause for pause on the first test, with stops on a break above (risk can be defined and limited against the level).
Whereas, the dollar is gaining ground against currencies like the EUR and the JPY (off earlier lows), the greenback continues to lose momentum against the NZD (the AUDUSD is also moving higher in tandem).
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