The NZDUSD – helped by higher dairy prices today and the weaker USD – is up testing the 100 hour MA and the topside trend line (see chart below). The 100 hour MA (blue line in the chart below) is currently at 0.7283 The trend line is at 0.7308. Both are moving lower – making it an easier hurdle in the process.
NZDUSD tests topside resistance.
The pair reached new lows going back to March 2011 in early far east trading. The semi-surprise from the RBA was a catalyst for the slide.
A move above the trend line should solicit more buying in the pair with the 50% at 0.73247 as the next close target (this is of the last leg lower). The 200 hour MA (green line in the chart ) and 61.8% both currently at the 0.7372 becomes another target . The price of the NZDUSD has not been above the 200 hour MA since January 19.
The overall trend remains to the downside for the pair. The MAs are still sloping decidedly to the downside. Even on a break, higher, there is the potential the market starts a period of corrective consolidation. Trader might start to gear up for some up and down action with rallies finding sellers and dips finding buyers as the trend transitions.
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