The break on Tuesday, failed on the break
The NZDUSD is trading at new session lows and in the process has moved below a trend line at 0.7033. That's bearish. What would increase the bearishness technically is a break below the 100 hour MA at 0.7026. The market is testing that level now.
Note that the market took the price below that MA line on Tuesday. That should have sent the price lower. The break failed, however, and the price moved to a new high since April 30th yesterday at 0.7059. This is the 2nd try. Will it be more successful than the first?
Helping the bears is that the high today stalled ahead of the high from yesterday. The price momentum is fading.
Moreover, at the high yesterday, the pair tested the 38.2% of the move down from the April high at 0.70584 (see daily chart). Holding that retracement level could also be a bearish clue.
Traders should look for the broken trend line to be a close ceiling now intraday. Stay below and the downside can be explored further.
If the MA is broken and the swing high from May 31 a few pips below that level, that should open the downside for more selling with the 38.2% and the 200 hour MA at 0.6993 as a target area.
PS the AUDUSD has moved below its 100 hour MA. It is trying to make a bearish break.
