Not much activity with 1/2 the week gone
The NZDUSD has been trading in a narrow 56 pip trading range this week. That comes after last week's near 200 pip range that saw the price move above - and close above - the 200 week MA. That MA comes in at 0.7424. The price trades at 0.7442 currently. So although the price is going sideways, the price is still trading above the 200 week MA. It has that going for it.
Drilling to the daily chart, the price action this week does show moves above and below the 0.7424 200-week MA level, but it also shows the price finding support at 0.7400 area.
The significance of that technically? The 0.7402 was the the swing high back in November 2016. The 0.7400 level is also a natural support level. Let's face it...since May 2015, the pair had only closed above the 0.7400 for 2 days. That is it. The last 4 days has closed above the 0.7400 level. Stay above it and the bulls are still in control. Move below it, and there may be some further rotation lower.
On the topside, the high from last week at 0.7458 is the next target, followed by the September 7th, 2016 high of 0.74847. By the way, the 0.7450 is the 50% of the move down from the 2014 high to the 2015 low. So that will also be a tough nut to crack.
Drilling down to the hourly chart, today,the pair has looked done a good job finding support buyers against the trend line and 100 hour MA. It has not been perfect but the combination of support from the daily chart and the hourly chart is showing the buyers are trying to keep in charge and if so, should make a run for the 0.7480-847 key topside target.
