Better Global Dairy Trade prices send pair higher but rally stalls ahead of resistance
The NZDUSD has traded up and down today. In the NA session the pair was helped by higher GDT auction results. The pair's price got close to a ceiling at the 0.6847 area and stalled. The price has since moved back down to the 100 and 200 hour MA lines.
Looking at the hourly chart, the pair is one of quite a few currencies which are non-trending. For this pair, the price stalled at the 100 day MA on May 10th (see chart above) and rallied 38.2% of the move down from the May 3rd high (at 0.6844). That high was around a high consolidation price from May 9th (blue circle 1). Since that peak, there have been three other tests of the 38.2% - including two today (the highs today peaked at 0.68403 and 0.68418 today vs 0.6844). The ceiling is in place.
On the downside, patient buyers will lean against the 100 day MA below at the 0.6720 currently. More aggressive buyers will look toward the 0.6741-45 (lows May 10 and today) with the most aggressive at 0.67812. This line has been a dividing bullish/bearish line going back to May 9th.
Traders should look to trade these levels and avoid the chop that characterizes non-trending markets.
If you have not seen by video on Attacking the Currency Non-Trends yet, you can do so, by clicking HERE. Be sure to weigh in with a thumbs up or thumbs down.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Source ↔ Listen MP3 Music