NZDUSD moves higher and moves closet to resistance targets. Could see some profit taking.

The NZDUSD is moving higher in trading today helped by better employment vs expectations and risk on flows after the BOJ said they don’t need to tighten if markets are unstable.

The move to the upside has taking the price above the 100 bar MA on the 4-hour chart, and also the 38.2% of the move down from the July high near 0.5965. The price also moved above its 50% midpoint and natural support near the 0.6000 level. That is now a close support.

ON the topside, the pair is approaching a key cluster of technical levels including the:

• 200 bar moving average on the 4- hour chart at 0.60317
• The 61.8% retracement of the move down from the July high at 0.60367
• The 100 day moving average at 0.6037

That area between 0.60317 and 0.6037 should attract sellers with stops on a break higher. Be aware.

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