Lower swing area between 0.70923 and 0.7104 is being approached
The NZDUSD is trading lower and in the process is looking toward a cluster of support including swing levels between 0.70293 and 0.71043, the 38.2% retracement of the move up from the October 13 low at 0.71005 and the 200 day moving average at 0.70985. The low just reached 0.7105.
Earlier today, the buyers, seen in a yesterday's trade, started to give up after the price traded back below the 200 and 100 hour moving averages (green and blue lines currently at 0.71604 and 0.71511). The price continued lower and broke below an old swing area between 0.71293 and 0.7136 as well. That break was another bearish move. The area would need to be broken to the upside to negate some of the short term negative technicals seen today.
Now, the next target area is in the trader's radar. Move below opens the door for more downside corrective probing.
The NZDUSD has been more supportive but has also been consolidating despite rate rises from the RBNZ. The recent employment data remains strong (see post here) . The next meeting will take place on November 24. The fundamental backdrop should keep the NZD supported, but technical selling can take place. That is what we are seeing today. Can the support area hold HERE? Risk can be defined and limited against the area.
Meanwhile, the Reserve Bank of Australia kept rates unchanged at the meeting yesterday but are not expected to raise rates for a while.
