Sellers lean against the midpoint
The NZDUSD fell sharply after the RBNZ surprised the market with a 50 bps cut in rates. The NZDUSD fell from 0.6567 to a low fo 0.6377. All that happened in an hour and a half of trading.
Since then, the price has been grinding higher, moving above the 100 bar MA on the 5 minute chart (blue line), the 200 bar moving average (green line). The 38.2% retracement at 0.64458 and up to the 50% retracement at 0.6467. That is where the price has stalled.
We currently traded 0.6453.
If the correction is over, traders will want to see the price moved back below the 100 bar moving average at 0.64426 currently and then the 200 bar moving average at 0.64351. If the 50% retracement is breached on the topside, there should be more of a upside probe with the 0.6488 low from Monday – which is also the 61.8% retracement of today’s move down – as upside target’s.