NZDUSD price rose today morning during the Asian session, but still quite indecisive. NZDUSD bounced upward from 0.7000 psychological support level. Bulls to sustain the bullish trend further 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.
December 23, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.7050 area and trying to push upside. The price also bounced higher from the dynamic level of 20 EMA on the daily chart. As per the current price action, NZDUSD may face strong resistance at the Kijun line and the Tenkan line on the intraday chart in the days ahead.
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NZDUSD Bounced Upward as Bulls Are Still Optimistic
NZDUSD is currently residing near 0.7050 area and trying to recover higher. However, the price is still residing below the Kumo Cloud on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD bounced upward and currently trading around 0.7050 area. As per the current scenario, if the price pushes further upside and rejects from the dynamic level of 20 EMA, NZDUSD may decline again towards 0.7010 to 0.7000 area. So, if the price declines towards 0.7010 to 0.7000 area and bounced upside with an impulsive bullish candle close, the bulls may regain momentum and recover higher towards 0.7150 to 0.7170 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price downward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
NZDUSD May Sustain the Bullish Trend
According to the daily chart, NZDUSD bounced upward and currently residing near 0.7050 area. As per the current scenario, if the price decline towards 0.7010 to 0.7000 area again and bounced upward with a bullish daily candle close, the bulls may regain momentum and push the price upside towards 0.7150 to 0.7170 area as a first target. The second target will be 0.7240 to 0.7250 area if the price breaks above 0.7150 to 0.7170 resistance in the days ahead.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing near the price. So, the dynamic level may work as a strong support if the price breaks above it. Also, the Bollinger Bands lower band is currently residing below the price, which may work as strong support to push the price upside in the process.
To conclude, as long as the price residing over 0.7010 to 0.7000 support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.