The NZD/USD pair opened with a gap higher but has spent the session oscillating within a narrow range. On the downside, support has held firm near swing levels established on November 14 and 18, as well as during two tests today, between 0.5835 and 0.5839.
On the upside, the 100-hour moving average (MA), currently at 0.5864, has capped the rally. Just above it, the 200-hour MA at 0.5868 reinforces this resistance zone. Both moving averages are trending lower, signaling a bearish tilt.
Key Levels to Watch
- Support: A break below 0.5835 would indicate bearish momentum, opening the door for further downside exploration.
- Resistance: A move above the 100-hour and 200-hour MAs, now near 0.5868 and edging lower, would shift the bias to the upside.
Market Sentiment
With the price currently at 0.5851, traders are watching for a breakout in either direction. The current tilt favors sellers, as long as the pair trades below the moving averages. Buyers, however, could regain control if the resistance levels are breached.
This article was written by Greg Michalowski at www.forexlive.com. Source