Topside trend line and 50% stall the rally. 100 hour MA below.
The NZDUSD inched to another new corrective high at 0.66154 in the London morning session. At the high, the price tested a topside trend line and 50% retracement at the 0.66132-145 area. Seller leaned against the resistance levels. The price rotated back to the downside.
The low – off the highs – reached to 0.65944 so far. That is still higher on the day (the close was at 0.65774). The price also remains above the broken 38.2% at 0.65866.
Another key level on the downside that has acted as a support of the last few days is the rising 100 hour MA (blue line) at 0.6577. On Monday (and last Friday), the price dipped below that MA line, but failed fairly quickly. Traders have used that MA as a level to lean against yesterday and again today at the Asian session lows (see blue line in the chart above).
The sellers are leaning against resistance. The buyers are leaning against support. The guard rails are defining the range.
We trade in the middle now – above the close and 100 hour MA at 0.6577 and below the trend line and 50% retracement. Pick your poison from here but the roadmap for the next break is defined.
PS. GDP data for 2Q will be released in the new trading day. The estimate is for a rise of 0.8% vs 0.5% in the 1Q. That may keep the price between support and resistance guard rails until the release with a push higher or lower dependent on the results.