Has the pair found a bottom at the figure level?
NZD/USD bounced off the lows at the start of trading yesterday under 0.7000 to finish with a flourish. The pair ended the day above the 61.8 retracement level @ 0.7032. And that is a much needed reprieve for buyers as the pair struggles to track below 0.7000 for the second straight day.
But more importantly, near-term momentum is starting to stall for sellers. Price is now trading back above the 100-hour MA (red line) and sits in between that and the 200-hour MA (blue line).
If price falls back below the 100-hour MA, bias turns bearish again and a test of 0.7000 will be eyed. But if price breaks above the 200-hour MA, then it turns bullish. And that will be a worry for sellers given how much the pair has dropped since the middle of April. If such a move were to materialise then the first upside level will eye a test of the 3 January low @ 0.7074 with the 50.0 retracement level sitting at 0.7110 next.
The market is all geared up for the US jobs report later. I reckon that will provide the catalyst for the next move.
