NZDUSD stalled near topside swing area on daily chartThe RBNZ's larger-than-expected 50 BPs rate hike initially boosted the NZDUSD today, with the pri
NZDUSD stalled near topside swing area on daily chart
The RBNZ’s larger-than-expected 50 BPs rate hike initially boosted the NZDUSD today, with the price breaking above a topside trendline on the hourly chart below, and spiking to a high of 0.63765 (entering a high-risk zone between 0.6363 and 0.63948 – see the daily chart above). However, buyers soon turned into sellers, reversing the uptrend and even pushing the price lower. PS. in my RBNZ rate decision preview post yesterday, I outlined this higher swing area as a key target (see the post here).
NZDUSD on the hourly chart
The subsequent price action dipped to 0.6284, nearing the rising 100-hour moving average (0.62768 at the time), before bouncing back (see smooth blue line on the hourly chart above).
The subsequent rally brought the price back to the old trendline, where sellers leaned.
What’s next?
Before revisiting the topside trendline, NZDUSD ‘s volatile action briefly took it down to the 100-day moving average (0.62978), where buyers stepped in and pushed the price toward the trendline (0.6331).
As a result, staying above both the 100-hour and 100-day moving averages favors buyers. However, surpassing and maintaining above 0.63312 remains a challenge that buyers must overcome. Without this, traders could face a tug-of-war between buyers at the 100-day moving average and sellers at the topside trendline.
Price action is volatile in the NZDUSD, but the technicals have settled the price between support below and resistance above.
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