The NZDUSD moved to the lowest level since November 2020 today after breaking below the swing low from yesterday near 0.6734. That was near the swing low from December 7 as well.
The Asian session saw a new low for the year at 0.6726, but a rotation back to the upside which peaked at 0.67595. Since then the price has moved down and up and back down again. The last low retested the earlier Asian session low at 0.6726 and once again found buyers.
The price is trying to move higher. The 0.67354 to 0.67401 swing area would now need to be broken IF the the buyers are to feel less pressure from the selling momentum. Let's face it, the ONLY thing the buyers have to "hang a hat on" is the double bottom on the hourly chart. That is not a lot.
However, if they can push the price above 0.6740, that MAY tilt the intraday flows back to the upside. Ultimately getting back above the 100/200 hour moving averages (blue and green lines) currently at 0.67665 and 0.67704 would be a further pressure release for the buyers. Absent that and the sellers are still in control.
PS Taking a broader look at the weekly chart below, the price has moved back below its 200 week moving average at 0.67456. Bearish.
With the current price trading at 0.6729, staying below that moving average line would be more bearish. On the downside, the next major target comes in at the 38.2% retracement of the move up from the 2020 low at 0.67012. A move below that level opens the door for further downside momentum.
