NZD/USD crashed down by 10 cents in mid March, as coronavirus spread and panic stroke the markets, sending risk currencies such as commodity dollars lower. Although, in the second half, this pair claimed back 6 cents and in April it climbed another cent.
Since then, NZD/USD has been consolidating in a range, trading sideways. The range has been around 250 pips wide, topping at around 0.6150 at the top and bottoming above 0.59. The price has bounced up and down inside this range several times and in the last two days buyers failed to push above the resistance.
So, today we have been seeing a pullback lower, but we decided to go long, since sellers are having trouble at the 100 SMA (green) on the H1 chart. The price pierced this moving average, but climbed back above it, so the 100 SMA is acting as support for NZD/USD now. Let’s hope the pullback is over, since it is already complete on this time-frame and NZD/USD bounces back up.