The NZDUSD extended higher yesterday as broad US dollar selling provided support. The upside momentum carried into today’s session, but the rally stalled right at the key 100-day moving average at 0.59596, with the high topping out just shy at 0.59586. Sellers stepped in at that level and pushed the pair lower, bringing it back toward a swing zone near 0.59376—a level defined by prior highs from August 15 and 18.
At this point, the market is caught in a tight battle between resistance at the 100-day moving average and support at 0.59376. A sustained break below 0.59376 would open the door for a move toward the 200-bar moving average on the 4-hour chart at 0.59088. Conversely, if buyers can hold the current support, it sets the stage for another retest of the 100-day moving average. A clean break above that level would tilt the bias more firmly in favor of the bulls.
In the video above, I outline the technical levels and explain the key levels in play.
