Sell high. Buy low. Until the break that is.
The NZDUSD has sure found it's sweet spot.
Over the last 6 trading days, the price has defined the range for traders. The high has a nice ceiling at the 0.74482 level. This happens to correspond with the 38.2% retracement of the move down from the January 15 high to the February 3 low.
On the downside, apart from a few straggly hourly bars that have pushed below the 200 hour moving average (green line in the chart below), the pair has found buyers against that key moving average level.
Needless to say the lines have been drawn for traders to buy low and sell high. In between those extremes is the 100 hour moving average (blue line in the chart above). That line did a pretty good job in providing support yesterday and earlier today, and resistance after the break lower.
With the price last kissing the 200 hour moving average, the next target test would be the 100 hour moving average at the 0.7398 level currently. Get above that level and look for additional buyers to help push the market toward the upper extreme.
It just seems to be the pattern and the sweet spot for the NZDUSD (until the break that is....)