The NZDUSD – like other pairs vs the USD yesterday – saw the pair shoot higher. The move extended above the 100 and 200 hour MAs, and for this pair also extended briefly above the 50% retracement at 0.63857.
However, going into the close yesterday, the price rotated lower to the 200 hour MA closing near that MA barometer.
In the US session today, the price moved lower. After initially finding support near a swing area neat 0.6311, the pair bounced, before rotating back down through the 0.6311 level toward the lower 100 hour MA (blue line) at 0.6277.
The low moved through that MA , but rebounded back above and is currently trading between the 100 hour MA below and the 200 hour MA above and near the 0.6311 swing level. The price is within a neutral technical area, awaiting the next shove.
Next week, traders will be eying the MAs for bias clues. Move above the 200 hour MA is more bullish. Move below the 100 hour MA is more bearish.
With focus mostly driven by what the USD does of late, on the calendar is existing home sales on Tuesday. Existing home sales account for 80% or so of home sales. So it will be an important barometer for the health of that sector as rates soar. This week Housing starts and building permits all declined sharply.
Fed speak will also be a focus, with Fed Chair Powell. testifying on Capitol Hill on Wednesday and Thursday being the highlight. .
Tags: #NZDUSD #bounces #dip #hour #fails