NZDUSD trends to the downside

The  NZDUSD  has moved sharply lower after the RBNZ hiked rates by 50 basis points. The expectations was for a 25 basis point hike.

Helping the run to the downside was the initial resistance against the 200 hour and 200 day moving averages. The price spiked higher to those moving averages soon after the rate decision, but found willing sellers and has been trending to the downside since then.

The price in the London session cracked below the 100 day moving average at 0.6782, and although there was a rise back above that level, the move was short-lived and the price has since moved to a new session low of 0.67513.

The next downside target on the hourly chart comes in between 0.6739 and 0.6742 (see chart above above. Below that and traders would be targeting the swing lows from March 15 at 0.67282.

It would take a move back above the 100 day moving average to give sellers some cause for pause. On a move higher could be a rotation back toward the 0.6805 to 0.68117 area (see green numbered circles in the hourly chart above)).

Drilling to the 5 minute chart below, the run to the upside saw immediate sellers vs the 200 hour/200 day MA. The move below the 100 hour MA and the 100/200 bar MAs on the 5 minute chart turned buyers to sellers (near 0.6859).

At the lows, the 100 day MA and the falling 100 bar MA on the 5-minute chart are both near 0.6783 area. Move above should give sellers some cause for pause with swing highs at 0.6788 and 0.68082 as targets ahead of the 38.2% of the days range at 0.6808 and the falling 200 bar MA at 0.6816 (and moving lower – green line). Those last two levels are near the 0.6805 to 0.68117 area on the hourly chart above (green numbered circles).


The NZDUSD has been trending lower today

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