The NZDUSD is up 0.54% in trading today helped by dollar selling, a risk-on sentiment, and a technical break.
Technically, after 2 days of testing the key 100-day moving average and finding willing sellers against that level, the NZDUSD is breaking above that key moving average at 0.59597. The current price is trading at 0.59712.
Staying above that moving average keeps the buyers in firm control and would have traders targeting the August high at 0.5995 (call it 0.6000).
What would spoil the buyer's party?
After testing the 100-day moving average over the last 2 trading days, I would expect that if the buyers cannot keep the price above that moving average, there would be some disappointment and rotation back to the downside once again.
The short video above outlines the key levels and explains why they are so important from a technical perspective.
