Correction contained.The NZDUSD was able to crack below the 100 day MA today at 0.72389. The momentum lower trended the pair to a low of 0.71668, and below the 50% of the move up from the May 11 low (see daily chart) at 0.71874. At the end of August and into September, the price moved and closed below the 50% for a couple days but failed. The fall below the 50% also failed and it has led to a corrective rebound.
Looking at the 5 minute chart below, the move higher has been able to extend above the 100 bar MA on the 5-minute chart at 0.7198 currently (blue line in the chart below). That MA has been tested on two separate occasions increasing the levels importance going forward. Stay above is more bullish for traders. Move below is more bearish.
The 200 bar MA at 0.72148 will be the next target on a move higher. Above that, and the 0.72216 will be eyed (50% of the day’s range). Remember the 100 day MA can ultimately be thought of a think like in the sand to stay below (risk level for shorts).
Should the price break back below the 100 bar MA on the 5-minute chart, and the sellers take back more control. We could see a retest of the lows for the day.