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Back below the 100 day moving average
The NZDUSD quickly dip to a new low after breaking below the earlier session low of 0.7012. The low price reached 0.70058 but quickly bounced higher. The pair currently trades at 0.7014.
Despite the bounce, looking at the five minute chart above, the sellers still remain in firm control.
- The corrective high off of the earlier session low found sellers against its 200 bar moving average (at 0.70325 and falling). Bearish
- The subsequent move took the price back below the 100 bar moving average on the same chart at 0.7025. Bearish
- The fall back below the 100 day moving average at 0.70222 are a further bearish signals.
If the price is going to give a more short term bullish signal, it needs to get above all three of those moving average levels to give the dip buyers some confidence and comfort.
This article was originally published by Forexlive.com. Read the original article here.