Business confidence threw the buyers a curve ball today
The ANZ business confidence threw the bulls/buyers a curve ball in the Asian session (see post from yesterday, "NZDUSD slow plays a topside technical break on the daily") . The price fell below the 100 hour MA (blue line in the chart below), then the 200 hour MA (green line), then two trend lines. (see Break. Break. Break. Break.... in the chart below).
The price also moved to new week lows taking out the Monday lows at 0.6668. That level was retested on the correction off the low today, and that makes the level a risk level for shorts now. Stay below is more bearish. Move above could/should see some corrective action to the upside.
What may help the corrective idea is that the pair has a double bottom at 0.6644. That level will need to be broken to next target the 50% retracement of the move up from August 15 at 0.66348. Below that the low from last week reached 0.6618.
Drilling to the 5-minute chart, the price over the last 5-6 hours has traded above and below it's 100 bar MA at 0.66579. We are currently below that MA. So the bears are still more in control. A move above is a early clue for more upside with the 200 bar MA at 0.6667 the next hurdle intraday.
Having said that, the double bottom on the hourly chart, actually has a number of swing lows at the level on the 5 minute chart (see red circles). That increases the levels importance technically.
