NZDUSD buyers are leaning against progressively higher technical levels. What next?

Last week, NZDUSD found support at the rising 200-hour moving average, holding its low before rebounding. The pair then broke above a key swing area (0.5683–0.5694), which acted as support on a corrective move Thursday before pushing higher. That day, the price also broke above the 100-hour moving average (near 0.5715), consolidated at that level, and then surged to a weekly high of 0.57716.

Since hitting that high, price action has been choppy, moving down, up, and then back down. Today’s high stalled near Friday’s high, while today’s low held at the 100-hour moving average, prompting a modest rebound. Buyers have consistently defended progressively higher support levels since Wednesday, keeping control of the market.

Key Technical Levels to Watch:

• Upside Targets:

  • 0.57492 – Last weekend’s high
  • 0.5771 – Highs from today and Friday (break above strengthens bullish momentum)

• Downside Support:

  • 100-hour moving average – Holding as short-term support
  • 200-hour moving average – Potential downside target if price breaks below the 100-hour MA

As long as buyers hold above the 100-hour MA, the bullish bias remains intact, with traders seeking further upside momentum. A break below, however, could trigger a move back toward the 200-hour MA, where another directional decision will be made. For now, buyers remain in control.

This article was written by Greg Michalowski at www.forexlive.com.