The NZDUSD has erased the gains from Tuesday and Wednesday, after stalling just ahead of a key resistance zone yesterday. That earlier move higher on Wednesday pushed toward the 38.2% retracement of the decline from the March 20 high to this week’s low, which comes in at 0.57714. The high price reached 0.5776, but buyers could not sustain momentum, with the rally falling short of the falling 200-hour moving average—a key technical ceiling (Green line on the chart below).

Into the close yesterday, the pair move lower, but found support at the rising 100-hour moving average (blue line), prompting a modest bounce. However, that support gave way as oil prices surged and broader USD demand picked up following headlines tied to President Trump’s speech. The break below the 100-hour moving average shifted the short-term bias back to the downside, accelerating the move toward the lows from Monday and Tuesday near 0.56979.

Once again, buyers leaned against that floor on two separate tests today, with the low for the day coming in at 0.56985—just above the earlier weekly lows. That level is now acting as a clear risk-defining support. The pair has since rebounded modestly and is currently trading near 0.5717. Moving below the 4 would open the door for further selling today and going forward. Until then there is hope for the dip buyers against the support level.

Bottom line:
Buyers have defended the 0.5698 area, but control remains limited. To regain more upside traction, the price needs to move back above—and stay above—the falling 100-hour moving average at 0.57324. If that happens, the focus shifts back to the 200-hour moving average and the 38.2% retracement near 0.57714. Until then, the sellers retain the edge on rallies with a focus on the floor as the next target to get to and through to explore more downside potential..

This article was written by Greg Michalowski at investinglive.com.



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