NZD/USD sellers have pushed the pair down into a key support cluster near 0.5930, where the rising 200-hour moving average meets a swing area with a long history of influencing price. Buyers must defend the zone to keep their short-term bullish bias intact; a break lower opens the door to 0.59068.
Sellers are testing the 200-hour moving average at 0.59318 after buyers lost control of the 100-hour average earlier in the session. The pair has been sliding since buyers failed to sustain last week's rally, and the 200-hour line is now the next line in the sand for both sides.
Buyers fail to hold the 100-hour line
NZD/USD climbed to a high of 0.59831 last week, but buyers could not extend the move to the late-May high at 0.5993. The initial pullback found support near the rising 100-hour moving average, and buyers attempted another push higher yesterday.
That rebound stalled at a lower high near 0.5982, handing sellers control. In the Asian Pacific session the price dropped below the 100-hour average with added momentum, bounced back to test the line, now at 0.59623, and then resumed its slide as sellers held resistance there.
A support cluster with a history of holding
The price is now testing the 200-hour moving average at 0.59318. It sits at the top of a swing area between 0.59187 and 0.59281. That zone acted as resistance earlier this month before it broke to the upside on August 19 and price has stayed above it since.
If buyers defend the moving average and the swing area beneath it, the short-term bullish bias stays intact, though the pair would still need to reclaim the 100-hour average to build confidence toward the recent highs and the 0.5993 level. A break below the swing low at 0.59187 would shift control toward sellers and open the door to a deeper move toward 0.59068.
Source: Investinglive
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