Moving averages support at the 200 hour moving average and 100 bar moving average on the 4 hour chart holds
The RBNZ surprise the market by keeping rates unchanged and that sent the NZDUSD soaring to the upside. The initial run higher with the price above the:
- 100 hour moving average (lower blue line at 0.6355 now),
- A trendline at 0.63658,
- The 200 hour moving average (currently at 0.6377), and
- The 100 bar moving average on the 4 hour chart (currently at 0.63811).
The price stalled at a high of 0.6415 before correcting lower.
That correction came right back down to the last two MA levels at the 0.6377-81 area (see yellow area). The low price stalled at 0.63817.
Holding that support level gave the buyers the go ahead to take the price back higher. We are currently testing the 61.8% retracement of the move down from the November 4 high at 0.64096. The high for the day at 0.6415 is the next target to get to and through.
If broken, the falling 100 day moving average at 0.64361 will be targeted. Going back to the high for the month on November 4, the price did move above that 100 day moving average, only to fail and come back down.
Buyers are in control.
Taking a broader look at the daily chart, the pair remains closer to the lows on still has the 38.2% retracement of the move down from the July high as a target at 0.64273.
Above that, traders will target that key 100 day moving average at 0.6436 . Prior to the rise above the 100 day moving average at the start of November (that failed), the last time the price for the NZDUSD was above the 100 day moving average was back on July 25.
A move above would open the door for further upside momentum. The major targets would include
- The 0.6450 high price from September
- The 0.64802 swing low from May.
- The 50% retracement of the move down from the July at 0.64966.
Those would be the next targets on more upside momentum. Frirst things first....get above the high for the day.
