NZDUSD has become non-volatile and impulsive after rejecting 0.6650 to 0.6658 resistance level. NZDUSD bears regained momentum and broke below 0.6600 event level. Will bears decline further? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
October 7, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.6585 area and trying to retrace upside. The price also broke below the dynamic level of 20 EMA impulsively on the daily chart and had a strong daily bearish candle close. As per the current price action, the price may retrace higher towards the dynamic level of 20 EMA in the coming days.
Possibilities for more support for Americans battling through the COVID-19 pandemic and the U.S. airlines looking to turn away a wave of cutbacks disintegrated on Tuesday. While President Donald Trump finished negotiations with Congress over a huge COVID bill. Moreover, Trump wrote on Twitter a day subsequent to rising from a medical remain for COVID-19 treatment, “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”
NZDUSD Bears Regained as the U.S. Dollar Index Recovering Losses
NZDUSD is currently residing near 0.6585 area and trying to recover higher. However, the price also broke below the Kijun line and the Tenkan line on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD bears regained momentum and currently trading around 0.6585 area. As per the current price action, after an impulsive bearish pressure, the price may recover higher. So, if the price recovers higher towards 0.6612 to 0.6619 resistance level and rejects, the bears may regain momentum and continue the bearish pressure towards 0.6520 to 0.6490 support area in the coming days. Alternatively, if the price retraces higher and breaks above 0.6612 to 0.6619 resistance zone, the bulls may recover upward towards 0.6650 to 0.6658 area in the process.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and Tenkan line. So, the dynamic level of 20 EMA may work as strong resistance if the price retraces upside in the days ahead. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.
NZDUSD Bears Are Optimistic
According to the daily chart, NZDUSD bears regained momentum as the 0.6650 to 0.6658 resistance level worked strongly. As per the current price action, the price may retrace upside towards 0.6612 to 0.6619 resistance. So, if the price retraces upward and rejects 0.6612 to 0.6619 area, the bears may continue the bearish pressure towards 0.6520 to 0.6490 area as a first target. The second target will be 0.6390 to 0.6330 area if the price breaks below 0.6520 to 0.6490 area in the coming days.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside in the process. Also, the MACD lines are currently residing below 0.00 level and gradually slopping down. It indicates that bears may sustain the bearish pressure further in the days ahead.
To conclude, after an impulsive bullish pressure, the bears regained momentum and had a daily bearish engulfing candle close. Another daily close is required to identify that the price will continue lower or not in the coming days.