The 100 hour moving average stalls the fall on the first look
The NZDUSD moved higher help by news that the country would look to tighten mortgage lending standards and the rise in the AUDUSD after the RBA said they would stay the course with the QE program taper.
The price moved up to retest the highs from last week (see red numbered circles) near the 61.8% retracement of the July trading range. Those levels came in near 0.70188.
Sellers leaned against the resistance level on two separate tests that today. The last was at the end of the London morning session and into the NY session.
The price started to move back to the downside helped by tumbling oil (risk off flows) and a weakish stock opening. The price returned back down to test the 100 hour moving average near 0.69808. The 200 hour moving average was close by at 0.69762.
Buyers leaned against the dual moving average levels, and have now pushed price back up toward the 0.7000 level.
As a result, the price action has now defined the trading range at least from a technical perspective.
- Resistance remains at the swing level and 61.8% retracement at 0.70188.
- Support is against the 100 hour moving average at 0.69808 and the 200 hour moving average at 0.69762.
Traders will likely waffle the price action between those levels until that time there is a break and run in the direction of the break.