NZDUSD is the biggest mover today
The NZDUSD moved sharply higher after the CPI data in the US today. In fact, the pairs 0.49% move is the largest percentage mover of all the major currency pairs today.
Looking at the hourly chart below, the price rise today did see the pair based against its 50% midpoint of the range since the July 28 the low at 0.69926. The CPI headline data shot the price above the near converged 100 and 200 hour moving averages around the 0.7016 area (see blue and green MA lines) and a swing area between 0.7018 and 0.70254 (see green numbered circles).
The break above those levels sent the price between it and another swing area between 0.70621 and 0.7066. That area is short of the cycle high near 0.7088 from last week’s trading.
Holding the 50% retracement level on the hourly chart, getting back above the 100 and 200 hour moving averages and the lower swing area were all bullish developments. Buyers took control.
What don’t the buyers want to see now?
Drilling down to the 5-minute chart below, the 38.2% retracement of the day’s trading range comes in at 0.70312. The midpoint comes in at 0.70236. Moving back below each of those levels would take some of the “bullish” momentum away from an intraday trading basis. Look for buyers to lean against the 38.2% retracement at 0.70312 if they want to keep and maintain firm control today (and make a run to the higher extremes going forward).