We’ve been watching NZD/USD for a while and finally, the currency pair has found its way back to test the 100 SMA! The currency pair is down almost 400 pips after tapping its yearly highs earlier in July, breaking support on the 200 SMA. Now the question is, will the 100 SMA hold?
The 100 SMA has proven to be a resilient support level in the past few instances that the pair tested it. Stochastic also indicates a divergence, making lower lows while price is making higher lows.
Just watch the daily chart carefully if you plan on trading it. A close below June 4’s low at the .8400 handle would invalidate our bearish bias and would mean that support on the 100 SMA will have already been broken.
To contact the reporter of this story: Jonathan Millet at email@example.com.