Price retests 50% midpoint of the move up from the September 29 low.
The NZDUSD continues the three day move to the downside that has seen the pair run from a high on Tuesday at 0.7173 to a low today at 0.7012 (161 pips).
The move lower today saw the price initially test the 50% midpoint of the move up from the September 29 low, and a downward sloping lower trendline near the 0.70374 area. After a modest bounce, both those levels were broken along with the 100 day moving average at 0.70224.
Subsequently, the price has bounced back higher in the London/early US session and it reach back up toward the 50% point at 0.70374. So far sellers are keeping a lid on the pair against that key midpoint, borderline level.
Stay below will keep the sellers in charge (and the dip buyers nervous). A move back below the 100 day moving average at 0.70224 would increase the sellers control (and the buyers nervousness).
Firstly move above the 50% midpoint and there could be further corrective probing on the failure of the break below the 50% and 100 day moving averages
