NZDUSD bulls strike higher and climb above 2019’s key resistance level. NZDUSD broke above 0.6850 psychological area with an impulsive daily close. Will bulls sustain the bullish pressure further? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
November 11, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.6890 area and trying to recover higher. After bouncing from the 0.6800 to 0.6790 support level, the bulls pushed the price upside and reached 0.6900 area. As per the current price action, the price may retrace towards the dynamic level of 20 EMA in the coming days.
Esther George, President of Kansas City Federal Reserve Bank, said Tuesday she energised and shocked by the force of the second from last quarter bounceback from the Covid-19 slump, yet said she anticipates that development to moderate, and trusts Fed financial strategy is the place where it ought to be. Moreover, George said of the Fed’s almost zero interest rates and current movement of bond purchases, “The calibration at present is appropriate”. On the other hand, the RBNZ interest rate decision remains unchanged as aspected, which is 0.25%.
NZDUSD Broke Above as the RBNZ Interest Rate Remain Unchanged
NZDUSD is currently residing near 0.6890 area and trying to push upside. However, the bulls are holding the bullish bias from an extended period may retrace downside in the days ahead.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD is currently trading around 0.6890 area and trying to recover upside. As per the current price action, if the price can have an impulsive bullish candle close above 0.6850 to 0.6860 area, the bulls may push the price upward towards 0.6940 to 0.6950 area in the coming days. So, if the price reaches 0.6940 to 0.6950 area and rejects, the bears may regain momentum and decline towards, 0.6860 to 0.6850 area as a first target. The second target will be 0.6800 to 0.6790 area if the price breaks below 0.6860 to 0.6850 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. 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.
NZDUSD May Revert Back to the Mean
According to the daily chart, NZDUSD broke above as bulls are optimistic. As per the current scenario, if the bulls sustain the bullish pressure towards 0.6940 to 0.6950 area and reject with a bearish candle close, the bears may regain momentum and retrace down towards 0.6800 to 0.6790 area in the coming days. So, if the price retraces downside and bounces higher from 0.6800 to 0.6790 area, the bulls may continue the bullish trend towards 0.6940 to 0.6950 area as a first target. The second target will be 0.6990 to 0.7000 area if the price break above 0.6940 to 0.6950 area in the process.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Also, the RSI line is currently residing above the overbought level 70, which indicates bears may regain momentum in the coming days.
To conclude, after an extended period of bullish momentum, the price should retrace at least towards the dynamic level of 20 EMA. A strong daily bearish close is required to identify the definite momentum in the days ahead.