NZDUSD is lower on day, but moves toward an equilibrium level defined by 100/200 bar MA

<p>The NZDUSD is trading within a value area with a high value area between 0.5985 – 96 on the top side, and 0.5879 – 94 on the downside. Yes, there have been extensions to the upside and downside over the last 7 weeks of trading, but most of the price action is between the aforementioned extremes (see red box on the chart below).</p><p>On Friday, the price extended outside the upper extreme reaching all the way up to 0.6050 before reversing lower and closing back within the value area. In trading today, after a brief move to the upside, buyers turned the sellers and pushed the price lower. In doing so, the price is approaching the rising 100/200 bar moving averages (and near converged) at the 0.5934 area. </p><p>Those moving averages will be the barometer for price action going forward. Staying above keeps the buyers in control despite the fall lower today. </p><p>Conversely, moving below and I would expect the dip buyers against those moving averages to turn into sellers.</p>

This article was written by Greg Michalowski at www.forexlive.com.