NZDUSD retraces Asian/European declines and extends back above 100 day MA

The NZDUSD fell in the Asian and European sessions today, and in the process moved down to test a key support level defined by the 200-day moving average (green line in the chart below) AND the rising 100-hour moving average (blue line in the chart below). Both those levels were near 0.6150. The low price reached just above that level at 0.6153 before rotating back to the upside and surging in the US session. Buyers leaned. Buyers were rewarded with the price reversing higher.

That move to the upside took the price back above a swing area near 0.6202 and 0.6206, and also back above its 100-day moving average of 0.6221. Recall from yesterday, the price tried to extend above that key moving average level only to fail.

So the break today is the second try. Stay above keeps the buyers in firm control. A more conservative risk level would be a move back below 0.6202 – 0.6205 (call it 0.6200).

Absent a move below those levels and the buyers are still in control and the door opens for further upside momentum in the pair going forward.

This article was written by Greg Michalowski at Source