NZDUSD rebounds after new week low failed to ignite more selling.

Retest 200 hour moving average

The NZDUSD cracked below its 100 hour moving average blue line) earlier in the Asian session, bounced to retest it, and found sellers. 

Retest 200 hour moving average_

That was a catalyst for a run to the downside that saw the pair break below its 200 hour moving average for the 1st time this week.  Recall on Monday, the pair tested that moving average line and found buyers (see green line in the chart above).  

The fall lower today ended up taking out the low from Monday at 0.7177. However, that break could only get to 0.7175 before rebounding – just 2-3 pips below the Monday low. 

The failed break has now led to a move back to the upside where the price is currently trading above and below the 200 hour moving average at 0.72031, and also back above the broken 38.2% retracement at 0.7197.  The intraday bias may be shifting if the price can stay now stay above 0.7197.

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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