There is some hope for both buyers and sellers
The NZDUSD fell below a trend line and the 200 hour MA on Friday. That tilted the bias (at least in the shorter/intermediate term) to the downside. The move on Friday was able to extend below the 50% retracement at 0.66543, and test a swing low from December 26 at 0.66435 before moving back higher. The rebound higher on Friday stalled near the 200 hour moving average (green line)
Today the price initially moved lower (the hourly chart above) but once again found support at the low from Friday/swing low from December 26 at 0.66435. Not being able to fall below that level helped to give buyers a reason to enter and they took the price back up to the 200 hour moving average where once again sellers leaned against the key moving average.
For the bears, what they like is the inability to move above the 200 hour moving average. In other words it will take a move up back above that level to solicit more fear.
However, the technical picture is not all one way. Bulls/dip buyers have some skin in the game as well. They like the fact that the 0.66435 level has held dips on the 3 last tests. The price is also currently back above the 50% retracement at 0.66543.
The end result is buyers and sellers at extremes are feeling okay. We currently trade between those 2 levels and expected traders will be looking for a break - with momentum in the direction of the break - as the next trend clue. They may also continue to buy low and sell high against the defined levels.
