The NZDUSD raced higher yesterday on the back of the lower CPI data yesterday. The run to the upside took the NZDUSD above its 100-day MA (blue line on the chart at 0.60017). The run to the upside reached up to high today of 0.6054. That was between a swing area between 0.60467 and 0.60598.
The subsequent rotation to the downside in the early New York session saw the pair move down to retest the broken 100-day moving average (blue step line on the chart below). The low price reached 0.60026 and found support buyers against that key technical level. The price is back up near 0.6030.
What next?
Support has been established at the 100-day MA/0.6000 natural support level. Hold there, and the buyers have the control.
On the topside, getting above the swing area between 0.60467 and 0.60598 would increase the bullish bias (or put a ceiling on the pair). Break above, and the 50% of the move down from the July high at 0.6092 followed by the falling 200 day MA at 0.6100 would be the next major technical targets. The last time the price of the NZDUSD traded above the 200 day MA was back on July 27.
This article was written by Greg Michalowski at www.forexlive.com. Source