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Down on the day after move above topside swing area yesterday failed
The NZDUSD yesterday moved to the highest level since January 8 when it breach the 0.7247 swing high level from January 26. That’s the bullish news, the not so bullish news is the price can only extend to 0.72535 on the break. That is not a lot of momentum.
The pair still marred in the up and down trading range, the price rotated lower and continued the chop lower in trading today. UGH.
The low for the day reached to the 100 hour moving average (blue line) at 0.72035 and moved below that level briefly to a new day low at 0.7199. However, the rising 200 hour moving average (green line) at 0.7194 could not be reached or breached. Going back to Monday’s trade, that moving average stalled the fall.
What now?
Watch the 0.7222 to 0.72252 area for intraday clues. If the price can move back above that level (see blue numbered circles) we could see a tilt more to the upside into the New York afternoon. Stay below, however, and we should see another retest of the moving average levels.
The ups and downs are not very fun. However if you can get good trade location at the extremes – often at technical levels – you can survive the chop. It takes patience however and anticipation from the technical tools that the market seems to be paying attention to.