Forex technical analysis: NZDUSD gives back most of CPI gains in trading today
Could not take out yesterday's highs
The NZDUSD have given back most of the CPI gains during the London and NY trading sessions. At the start of the trading day today, NZ CPI was reported up by a greater than expected 1.0% for the 1Q and 2.2% YoY. Both were higher than expectations of 0.8% and 2.0%. respectively.
The rally higher moved its way up to test the high from yesterday at 0.7052, but fell a pip or two short of breaking out (double top). Sellers were leaning, and the price started to move back lower.
Technically, the price has stayed mostly below the 100 hour MA (at 0.70199 currently) in the NY session. There were a couple bars where the price tried to move above, but sellers reentered. On the downside, the pair has been able to stall ahead of a trend line connecting recent lows. That trend line comes in at 0.7005.
You can't be too bearish or bullish given the recent price action. The buyers had the opportunity to take the price higher, but they failed. In addition to trend line support, there is also support on the hourly chart at MA levels in the 0.6987-93. The 50% of the move up from last weeks low comes in at 0.6980.
Looking at the daily chart, the pair remains more toward lower extremes over the last 10 months of trading. The price is below the 100 day MA at 0.7074. That is also where the 38.2% of the move down from the Feb high is found. Keep that level in mind going forward. ON the downside, the 0.6951-70 is a support level. Below that, there is trend line and lows to target.