The NZDUSD sellers are testing the 200 hour MA line in the sand. Buyers are defending the MA level.
The NZDUSD moved sharply higher last week, extending to a high of 0.59831. However, buyers could not sustain the momentum to the high from late May at 0.5993
The initial decline found support near the rising 100-hour moving average yesterday, and buyers made another run to the upside yesterday. That rebound stalled at a lower high near 0.5982, giving sellers the go-ahead to push the pair back lower. Today, in the Asian Pacific session the price fell below the 100 hour MA with more momentum (blue line currently at 0.59623). The price did bounce with the price reaching the MA level, but sellers held resistance and the price momentum to the downside restarted. .
The price is now testing a key support cluster near 0.5930. That area includes the rising 200-hour moving average at 0.59318 and the top of a swing area between 0.59187 and 0.59281.
That swing area has a long history of influencing price action. It acted as resistance earlier this month before breaking to the upside on August 19 and staying above. With the price decline it is now coming into play for both buyers and sellers.
If buyers can defend the 200-hour moving average and the swing area below it, the short-term bullish bias remains intact. The price would still need to move back above the 100-hour moving average to give buyers more confidence. Above that level, the next targets would be most recent highs along with the end of May high at 0.5993.
Conversely, a break below the 200 hour MA and the low of the swing area at 0.59187 would weaken the technical picture and shift more control toward the sellers st least in the short term. It would also open the door for a deeper corrective move, with 0.59068 as the next downside target.
For now, the buyers are looking to defend the line. Can they hold support and restart the move higher, or will the sellers push through and take greater control? The reaction near the 200-hour moving average and the 0.59187–0.59281 swing area will provide the next technical clue.
This article was written by Greg Michalowski at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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