The RBNZ kept rates unchanged at 5.5%, and were more dovish in their projections and their comments. As a result, the NZD is tumbled lower. The NZDUSD has broken through some key support levels.
The 100 and 200-bar moving averages on the 4-hour chart were broken at 0.61310 and 0.6126. More recently in the North American session, the 100-day moving average was broken at 0.60917 after stalling at that level in the European morning session.
Breaking below the 100-day moving average now sets that level as the close risk. On the downside, the 200-day moving average at 0.60757 is the next target that if broken would open the door for further downside momentum.
The low price from February reached to 0.60372, and that will be the next target should the 200-day moving average be broken.
Conversely, if sellers can’t keep the price below the 100-day moving average, there could be disappointment on the fail break in a move back toward the broken 100 and 200 bar moving averages on the 4-hour chart near 0.6127.
This article was written by Greg Michalowski at www.forexlive.com. Source