NZD/USD hugs the 100-hour MA to start the week
The downside move which began from mid-April is now finding some difficulty in breaking lower past 0.7000 for the time being. The low for the year bottomed out at 0.6985, which is near the November high @ 0.6980 - now turned support level.
While the downside momentum isn't exactly killed off just yet, sellers now enter a crucial period as near-term momentum in the pair is put to the test.
Looking at the hourly chart, the pair is now trying to look for direction as it hugs the 100-hour MA (red line) in trading today. If sellers can hold below the level, bias for the pair is still bearish but it is difficult to establish further downside without a firm break of the 0.7000 level in my view.
For buyers, the first real key test will be to stay above the 100-hour MA and move towards a break of the 200-hour MA (blue line). That will shift the near-term bias back to bullish. The last time the pair traded above the 200-hour MA was back in 17 April.
Those levels mentioned will be key levels to look out for in terms of bids and offers, as well as areas to define and limit risk.
