NZDUSD is retracing upward towards the dynamic level after an impulsive bearish momentum. NZDUSD bears active below 0.7100 psychological event level. Will bears continue to push further lower in the coming days? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
April 7, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7045 area and trying to push downside. After an impulsive bearish momentum, the price has faced strong support around 0.6930 to 0.6950 area and pushed upside. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the daily chart in the coming days.
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NZDUSD Bears Active as the Overall Momentum Is Bearish
NZDUSD is currently residing near 0.7045 area and trying to decline. Moreover, the Kumo Cloud is holding the price as strong resistance on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD bears active and currently trading around 0.7045 area. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7100 to 0.7060 area, the bears may regain momentum and push the price downside towards 0.6950 to 0.6930 area in the coming days. Alternatively, if the price can break above 0.7060 to 0.7100 area with an impulsive bullish candle close, the price may recover higher towards 0.7180 to 0.7200 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead.
NZDUSD May Sustain the Bearish Bias
According to the daily chart, NZDUSD bears active and currently residing near 0.7045 area. As per the current price action context, if the price can have an impulsive daily bearish candle close below 0.7100 to 0.7060 resistance area, the bears may regain momentum and continue the bearish pressure towards 0.6950 to 0.6930 area as a first target. The second target will be 0.6780 to 0.6750 area if the price can break below 0.6950 to 0.6930 area in the coming days.
Image: NZDUSD Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downward. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may sustain the bearish trend further in the process.
To conclude, after an impulsive bearish momentum, the price has successfully retraced towards the dynamic level on a daily chart. As the overall bias is bearish, there is a high chance that NZDUSD may decline further lower in the coming days.