A 100-hour moving average prevents you from falling when you look at it for the first time
NZDUSD brought higher aid with news that the state plans to tighten mortgage standards and the AUDUSD rise after the RBA said they would continue on course to tighten the QE program.
The price rose to re-test last week’s records (see red numbered circles), the July trading area’s 61.8% retracement. These levels approached 0.70188.
Vendors relied on the level of resistance in two separate tests today. The latter was at the end of the London morning session and to the NY session.
The price started to fall back, which was helped by lower oil (risk flows) and a weak share opening. The price fell back to test a 100-hour moving average near 0.69808. The 200-hour moving average was close to 0.669762.
Buyers relied on double the moving average and have now raised the price back to 0.7000.
As a result, pricing has defined the trading area at least from a technical point of view.
- The resilience remains at the level of fluctuations and the retracement is 61.8% at 0.70188.
- The aid is 0.69808 against a 100-hour moving average and 0.69762 against a 200-hour moving average.
Traders are likely to foam the price level between these levels until the break and run towards the break.