38.2% of the last trend move lower in the NZDUSD finds sellers
The NZDUSD has seen buyers push the price higher after 4-days of declines. However, the run to the upside has found sellers nearly 38.2% retracement of the last trend leg lower at 0.71779. The price also stalled ahead of its falling 100 hour moving average . That moving average is also near the 0.71779 retracement level now increasing levels of importance going forward.
Recall from March 2, the price correction after a trend like move lower, sold at the 38.2% retracement (near 0.73064 - see chart below). The inability to move above that retracement level, turned buyers and sellers. That is the same risk that the market buyers face now.
Yesterday the price did extend above the 38.2% retracement but could not sustain upside momentum.
If buyers are to take back technical control from the sellers, getting and staying above the 38.2% retracement AND 100 hour moving average is the minimum requirement. Failure to do so keeps the sellers more control.
On the downside, watch the 0.7150 for intraday support. If the buyers can base near this level, there is a chance for another run toward the key levels above. Failure to hold, and we should see further downside momentum.
