NZDUSD bounces off support near the 200 day MA and approached hourly MA levels

The NZDUSD moved lower in the Asian session as lower food price inflation data, and a shift in policy focus from the RBNZ from targeting employment and inflation, to just targeting inflation. The data and the policy decision helped to push the NZDUSD to new lows for the week and to the lowest levels since November 28.

Technically, the price also moved away from its 100-hour moving average (blue line on the chart below) at 0.61305 and tested it 200-day moving average of 0.60878 (lower green step line on the chart below). The low price reached 0.60834 which was also in-between a swing area between 0.60788 and 0.60856. All those targets will be levels that would need to be broken on the downside, to increase the bearish bias through the FOMC rate decision.

On the topside, the rebound off of the lows today has taken the price closer to its 100-hour moving average and 0.61305. Above that is the falling 200-hour moving average of 0.61449. If the price of the NZDUSD can get above those MAs, the bias would tilt back in favor of the buyers. Traders would target the high yesterday at 0.61685, the high from last Friday at 0.6191 and the high from last week at 0.62215. The roadmap with a price currently at 0.6122 is tilting a little more to the downside below the 100-day moving average. However, the dip buyers against the 200-day moving average are still in play and hoping for a break of the hourly moving averages through the rate decision and all the details.

This article was written by Greg Michalowski at Source