Moves away from 200 hour MA
The GDT price numbers came out weak at -3.9% at the latest auction. The price of the NZDUSD has been able to extend to new session lows on the news. It is not running away, but it is "walking away" from the 200 hour MA at the 0.6917 level (now a risk defining level for shorts). The price also moved below the 100 hour MA today (blue line in the chart below at 0.6931). That gives the pair a more bearish bias.
The 0.6881-86 area is the next downside target (see yellow area in the chart above) should the price remain below the 200 hour MA level.. That area has been home to swing lows going back to Dec 20. There was a break below on December 23rd on the way to the lowest level since June 3rd at 0.6861, but that move stalled ahead of a trend line on the daily chart connecting lows from August 2015 and January 2016. That trend line currently comes in at 0.6855.
The fall has stalled at the 0.6898 and the price is back trading at 0.6909. Traders will be watching that 200 hour MA as resistance. If the price can stay below, the bears will have more to talk about and we should see a further explore lower. If the price moves back above, the sellers might start to feel they were suckered in (and should cover).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.