NZDUSD corrects lower after sniffing the 200 day MA

Technical Analysis

The NZDUSD is correcting lower helped by the rising US dollar in trading today.

The low price reached 0.62177. During yesterday’s trade, the high price extended to 0.6288. That got within sniffing distance of the falling 200 day moving average (see green overlay line on the chart above at 0.62979). Sellers leaned ahead of that moving average and that helped to give sellers the confidence to push lower.

On the downside, traders will be eyeing the 38.2% retracement of the most recent move up from the November 17 below. That level comes in at 0.62023. The swing highs from November 15 at 0.62023, and November 18 at 0.62056 make that area (down to 0.6200) a key support target/barometer for both buyers and sellers.

Buyers looking for a move to and through the 200 day moving average, would now want to see the corrective move stall ahead of that area, base and move back to the upside.

Conversely sellers who feel the price has gone enough since the October 12 low down at 0.5541, would want to see that area down to 0.6200 broken – tilting the bias more to the downside in the short term.

The buyers are trying to push price back higher. As I type the current price is trading at 0.62408. Watch the 0.62516 level for a more bullish clue. If you went back to August 25, that level was the high price before the market started to trend back to the downside (not shown on the chart) and ultimately to the October low near 0.5500.