NZDUSD Bounced Back From 0.7100 Support Level – Will Recover Higher?


NZDUSD fall today morning during the Asian session as the price faced resistance at 20 EMA. NZDUSD bounced back from 0.7100 psychological support level. Will the bulls recover higher 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. 

March 10, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7137 area and trying to push downside. After rejecting 0.7300 to 0.7280 resistance area, the bears pushed the price down quite impulsively, but failed to break below 0.7130 to 0.7100 support level and had a daily impulsive bullish candle close. As per the current price action, the price may retrace at least 50% of the daily bullish candle in the coming days.

Moreover, Treasury Secretary Janet Yellen said on Tuesday that the U.S. Treasury would attempt to rapidly give out $350 billion in support to state and native administrations from President Joe Biden’s Covid-19 stimulus bill. On the contrary, Prime Minister Jacinda Ardern said, in remarks following Oprah Winfrey’s meeting with Prince Harry and Meghan, that New Zealand is probably not going to quit having Queen Elizabeth as its head of state at any point in the near future,

NZDUSD Bounced Back as the Overall Bias Is Still Bullish

NZDUSD is currently residing near 0.7137 area and trying to retrace lower. However, the Kumo Cloud is holding the price as strong support on the daily chart.

NZDUSD Bounced Back

Image: NZDUSD 4 Hour Chart

According to the 4-hour chart, NZDUSD bounced back and currently trading around 0.7137 area. As per the current price action, if the bulls pushed the price lower towards 0.7130 to 0.7100 support level and bounced with an impulsive candle, the bulls may regain momentum and recover higher towards 0.7280 to 0.7300 area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing above the price, which is holding the price as strong resistance. So, the bulls may regain momentum if the price can break above the dynamic level in the process. Moreover, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.

NZDUSD May Decline Further Lower

According to the daily chart, NZDUSD bounced back and currently residing near 0.7137 area. As per the current price action, if the price can have an impulsive daily bullish candle close above the last candle’s high, the bulls may sustain the bullish trend towards 0.7280 to 0.7300 area as a first target. The second target will be 0.7450 to 0.7460 key area if the price can break above 0.7280 to 0.7300 area in the coming days. Alternatively, if the price breaks below 0.7130 to 0.7100 area with an impulsive bearish candle, the bears may sustain the bearish pressure towards 0.6920 to 0.6900 area in the process.

NZDUSD Bounced Back

Image: NZDUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing over the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead. However, the Kumo Cloud is still residing below the price. So, it may carry the price as strong support in the process.

To conclude, the price had an impulsive daily bullish candle close above 0.7100 to 0.7130 area, which indicates that the bulls are still residing on the market. A daily close will help to identify the definite momentum in the coming days. 

 

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