Down the day after the failed move above the upper oscillation zone yesterday
The NZDUSD rose to its highest level since Jan 8 yesterday when it broke through the 0.7247 swing high of Jan 26. This is the bullish news, the not so bullish news is that the price can only expand to 0.72535 at the break. It’s not a lot of momentum.
The pair was still marred in the ascending and descending trading range, the price turned lower and continued to fall in trading today. UGH.
The day’s low hit the 100 hour moving average (blue line) at 0.72035 and briefly broke below that level to hit a new daily low of 0.7199. However, the rising 200-hour moving average (green line) at 0.7194 could not be reached or crossed. Getting back to Monday’s trade, this moving average blocked the fall.
Look at the 0.7222 to 0.72252 area for intraday indices. If the price can pull back above this level (see the blue numbered circles), we might see a more upward tilt in the New York afternoon. Stay below, however, and we should see another test of the moving average levels.
The ups and downs aren’t much fun. However, if you can get a good commercial location at the extremes – often at the technical level – you can survive the chop. However, it takes patience and anticipation on the part of the technical tools to which the market seems to be paying attention.