The NZDUSD has been choppy in today’s trading, moving both above and below its 100-day moving average at 0.5959. The pair opened the day with a dip to 0.5938 in the first hour of trading, but then spent much of the Asian and early European sessions fluctuating around the moving average, unable to establish a clear directional bias.
In the most recent 4-hour bar, however, the price has extended to the upside, pulling away from the 100-day moving average. That move gives buyers a stronger foothold and a potential green light to push the pair higher.
The next key upside test sits at last week’s high near 0.5979. A break above there would open the door to a retest of the August high at 0.5995, followed by additional swing targets at 0.6031 and 0.6059.
For the bullish case to remain intact, the pair must hold above the 100-day moving average (0.5959 – the buyers are making a play). Staying above keeps the technical bias pointed higher and encourages further probing to the upside. Conversely, a move back below would neutralize momentum and give sellers renewed confidence.
This article was written by Greg Michalowski at investinglive.com.