Swing zone between 0.7072 and 0.7077
The NZDUSD continued its uptrend which started near the low of 0.6908 on October 7-8 and October 11 on Wednesday. Wednesday’s low price hit 0.69106 and rebounded higher.
Yesterday’s trade action saw the pair move above its 100-day moving average (currently at 0.70199 – see the higher blue line in the chart above). The buyers did a good job of keeping support against this level, and the price continued its uptrend in trading today.
The pair just hit a new session high at 0.7775. This brought the price into a swing zone between 0.7072 and 0.7277. This area of oscillation corresponds to the bottom of a consolidation range going back from early September to mid-September (between 0.7272 and 0.71694 – see the red box in the graph above and the numbered red circles).
So far sellers are trying to lean against this swing area. A move above would cause traders to target the 200-day moving average at 0.70979 (call it 0.7100) and also move the price further into the consolidation range from September.
If the sellers enter against the swing zone here, watch the 0.7056 level for near support. Going below that level – then the broken 61.8% retracement at 0.7050 – would cause traders to think more about looking for the downside.
This could see the price fall back to the broken 100 day moving average near 0.7020.
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