Price remains confined in range since October 19
The NZDUSD is higher but still trades in a choppy price action. The NZD is the strongest of the major currencies today.
Looking at the hourly chart above, the price has waffled in a range between 0.71293 and 0.72179 (only 88 pips) since October 19 (10 trading days - see red box). That is not a lot. The non-trending range comes after the price trended to the upside. Clearly buyers and sellers are battling it out and waiting for the next shove.
Technically, the consolidation has led to the catching up of the 200 hour MA (green line) to the 100 hour MA. Those two moving averages are now near converged at 0.7171 area. The current price trades above those two MAs which gives it a positive bias. Having said that, earlier today, the price traded above and below those moving averages as traders struggled with directional bias to start the week.
The buyers have taken more control in the European/early US session with the price moving up to a high of 0.71975. The price has since retraced back to the 0.7179 level. The good news for the buyers is the price remains above the moving averages. The not so good news is that the price rise to the upside is threatening to stall out. Nevertheless as long as the price can remain above the two moving averages, I will still give the nudge in the direction of the buyers.
If the buyers can take the price back above the 0.71935 level, traders will start looking toward the 0.7200 level and then the highs from October 21 and October 28 at 0.7217. A move above that ceiling would have the pair trading at the highest level since June 8. That is still always off of the May 2001 high of 0.73148 and the February 2021 high for the year at 0.74642 (see the daily chart below).
PS Taking a broader look at the daily chart, of significance from that chart is that the price lows over the last 10 days have found support near the 50% midpoint of the 2021 trading range. That level comes in at 0.71342. Staying above that level - after the sharp rise from the end of September low - is somewhat bullish. It would take a move below that 50% midpoint with momentum to hurt the bullish sentiment on the daily chart. Keep that level mind going forward.
