NZDUSD buyers take back some control to the upside. Can they keep it?

The NZDUSD moved above its 100 and 200 converged hourly MAs earlier today after breaking below it yesterday and staying below it on the corrective moves.

That gave the buyers more confidence and the price moved higher.

The run to the upside extended after breaking above its 100-bar moving average on the 4-hour chart at 0.6005. The momentum extended to a swing area between 0.6031 and 0.60387 where sellers have reentered.

What next?

On the topside, the aforementioned swing area above (up to 0.60387) would need to be broken to increase the bullish bias.

On the downside, holding the 100 bar moving average on the 4- hour chart near the 0.6005 level would keep the buyers in play for further upside probing.

On a break below 0.6000, and I would expect a rotation back toward the converged 100 and 200-hour moving averages currently at 0.597. If that is tested both the buyers and sellers would be interested to see what happens from there. KEY level for both.

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