NZDUSD moves back below its 200 hour MA but finds support at 50% midpoint target
<p class="PDq2pG_selectionAnchorContainer">The NZDUSD pushed to its highest level since June 5 yesterday, but the rally lost momentum and reversed lower, leading to a corrective move that has now reached an important technical support zone. The pair is currently testing its 200-hour moving average at 0.5819 while also holding near the 50% retracement of the May 29 high to the June 26 low at 0.5809. Today's low reached 0.5812 before attracting some buying interest, suggesting this area is being closely defended.</p><p class="PDq2pG_selectionAnchorContainer"></p><p>From a technical perspective, buyers need to reclaim the 200-hour moving average and then push back above the 100-hour moving average at 0.5839. The 100-hour MA was broken during yesterday's reversal after the rally to new highs stalled, coinciding with renewed U.S. dollar strength. </p><p>A move back above both moving averages would shift the near-term bias back in favor of the bulls and increase the odds of another run toward the June highs.</p><p>On the downside, a break below the 50% retracement at 0.5809, followed by a move beneath the 0.5800 psychological level, would strengthen the bearish case. That would likely trigger a rotation toward the next key support zone between 0.5765 and 0.5777.</p><p>Since late May, NZDUSD has experienced two well-defined trending phases—a sharp decline followed by an equally impressive recovery. Throughout both moves, the 100- and 200-hour moving averages have done a good job defining the prevailing trend. The recent break below the 200-hour moving average raises a caution flag for buyers, but as long as the pair can hold near the 50% retracement and reclaim the key moving averages, the broader recovery remains intact. The battle around this support zone is likely to determine the pair's next directional move.</p>
This article was written by Greg Michalowski at investinglive.com.
This article was sourced from Forexlive. WealthWire aggregates financial news for informational purposes only. This does not constitute investment advice.
