NZDUSD moves below 100/200 hour MAs
The NZDUSD is trading below its 100/200 hour moving averages which are near converged at 0.6054 (blue and green lines in the chart above).
The move below tilts the bias to the downside. The low from yesterday came in at 0.60402. Yesterday the pair stalled at the 100 hour MA and rotated higher, helped by the weaker ISM non-manufacturing data which weakened the USD.
The pair moved higher earlier in sympathy perhaps with the rise in the AUDUSD after the 25 basis point hike by the RBA. The price of the pair moved above a swing area between 0.60829 and 0.60949. That momentum faded and the rise in yields (US 2 year is now up 5 bps and 10 year up 3.4 bps) has pushed the price lower.
On the downside, increased selling will eye the low from yesterday at 0.6040 and then a level near 0.60342. Moving below each would give sellers more confidence in the break to below the MA levels.
Sellers are making a play. Can they keep the momentum going?