Big move lower but seeing a bounce
The NZDUSD moved sharply lower into the NY morning sesssion. The range for the day is over 150 pips. IN the process, the 100 hour MA (at 0.60736) was broken, then the 200 hour MA (at 0.6012). The pair reached it's limit at the 61.8% at 0.5952 level. The low reached 0.59543 and bounced.
The bounce over the last few hours moved back up to retest the broken 200 hour MA (green line) and found sellers.
The pair is now between the 50% midpoint at 0.59859 and the 200 hour MA at 0.6012. A move outside those extremes should solicit more momentum in the direction of the break.
Stocks in the US are off the lows and that has lessened the flight to safety of the USD and flight out of the risk of the NZD. However, there remains the technical limit at the 200 hour MA. Staying above the 50% gives hope but it will likely take more rally in equities to get to and through that topside target (and stay above). If we don't get it, the 50% could easily be broken again with probing back to the downside.
