Trade is sloppy....
The GDT auction today showed prices down -2.4% from the last auction. That has helped to push the price of the NZDUSD back lower and back toward the 200 day MA at 0.71527 (green step line in the chart below). The low reached 0.7150. The last few hours had seen the price trade a little below the MA line and back above the MA line. However, the low was not able to take out the Asian session low at 0.71468. Sloppy trading.
Also making trading a bit sloppy today was that the price fell below a floor level that had 4 separate lows at 0.7166. Like the 200 hour MA, the price action has moved below and above that floor. Sloppy trading.
Although sloppy, we are trading a key level. So that is giving traders a cause for pause.
Looking at the daily chart below, the pair in the end of August and the beginning of September stalled just ahead of the 200 day MA. Today, we have dipped below it on two separate occasions, but the traders are being cautious.
Does it mean we get another bounce from here?
I have to still give the benefit of the doubt to the sellers but that is because the price is also below the low floor at the 0.7166 level. If the price rebounds back above that level, I would turn the bias more to the upside, but until then, shorts more in control
So trading is sloppy today, but the market is trying to make a push. Can it be sustained?
