NZDUSD traded sharply higher yesterday, helped by sentiment risk and other bullish technical breakouts. Specifically, the price has surpassed its 100-day moving average, currently at 0.60786.
The price also broke above a key swing zone between 0.6078 and 0.60856. This area was home to several swing lows and swing highs dating back to November 2023 (see the red arrows on the chart below). Bullish momentum accelerated following breaks above these levels yesterday.
Today there were more downward corrective price actions. However, the low price held comfortably above the aforementioned levels, including the 100-day moving average and swing zone.
Looking ahead, the 50% retracement is a key level that will need to be breached and stayed breached, to increase the bullish bias going forward. The current price is back above these levels, tilting the bias further to the upside.
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