Looks to test the 61.8% of the 2021 trading range
The NZDUSD is trading up for the sixth consecutive day today. The NZD is also the strongest of the majors today.
Over that period the price has moved up nearly 300 pips.
- The price moved above its 100 day moving average last Wednesday, and
- Extended above its 200 day moving average (and a downward sloping trendline) during trading yesterday.
- The 50% midpoint of the 2021 trading range was also broken yesterday at 0.71342.
Today the price extended above its September high at 0.71694. That level is now a close risk level for buyers. Stay above is more bullish.
The next upside target comes in at the 61.8% retracement of the 2021 trading range at 0.7212. The current price trades right around 0.7200.
Drilling down to the hourly chart, the run to the upside has been without large corrective moves. The biggest correction came on Monday after testing the 200 day moving average and failing, but the move down stalled well ahead of its 38.2% retracement of the trend move higher at 0.70304.
The current run to the upside started on Monday at 0.70486 and is extended to 0.72036 today. The 38.2% retracement of that move comes in at 0.7144 (using the current high price). A move below the September high at 0.7169 would target that retracement level. Ultimately from a technical perspective, getting below that 38.2% retracement of the most recent move (assuming the high is in place which it may not be) is the minimum retracement target if the sellers are to start to take more control.
So overall the buyers remain in firm control in the NZDUSD trading pair.
