Trades between 100/200 hours MA
The NZDUSD has followed the upward trend of the US dollar today (NZDUSD lower) after a stronger-than-expected US job report.
The pair moved lower and cracked below their 100-hour moving average (currently 0.70328) and continued on the old swing ceiling from 0.7018 to 0.70203 to test their 200-hour moving average (green line currently 0.70025). The price traded briefly slightly below the level, but it has risen modestly.
The low rebound has managed to stay below the 38.2% decline above the 28 July low and also below the aforementioned swing range of 0.7018-0.70203. These levels need to be changed again to make buyers more comfortable for 200 hours trading their low risk against 200H MA.
Recalling earlier this week, NZDUSD rose much stronger than expected on Wednesday after the NZDUSD employment report. On that day, the aforementioned swing area (between 0.7018 and 0.70203) was broken and the price rushed higher. The price peaked at 0.70873 on Wednesday. This high level was just below the moving average of almost 100 and 200 days, around 0.7093.
There were strong jobs in New Zealand. The United States had a strong job. Both publications have a potential impact on central bank policy. A New Zealand analyst raised the tightening to August 18. In the US, the trend is narrowing sooner rather than later.
It is logical to move data back to the 100- and 200-hour moving averages. But now is the time for traders to make the next shot.
Do traders break the price below 200 hours MA (in which case look for more sales)? Or are low-risk buyers gaining enough momentum to get the price above the swing range and look at the 100-hour moving average again?
So far, low-risk buyers are at stake.