NZDUSD bears have regained momentum after rejecting 0.7320 to 0.7300 psychological area. NZDUSD bulls failed to hold the bullish momentum above 0.7250 support level. What is next? Bears to push the price down 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.
June 2, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7230 area and trying to push lower. After bouncing from 0.7160 to 0.7180 support level, the bulls have regained momentum and pushed the price higher, but failed to break above the bullish channel resistance level. As per the current price action context, the price may face strong support at the bullish channel in the coming days.
NZDUSD Bulls Failed as the Resistance Level Worked Strongly
NZDUSD is currently residing near 0.7230 area and trying to push downside. However, the price also broke below the dynamic level of 20 EMA on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD bulls failed and currently trading around 0.7230 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.7250 to 0.7240 area, the bears may push the price downward towards 0.7180 to 0.7160 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may act as strong resistance to push the price down. Moreover, the MACD lines are currently residing above the 0.00 level and gradually sloping downside. It indicates that the bears may sustain the bearish pressure further in the process.
NZDUSD May Break Bullish Channel Support
According to the daily chart, NZDUSD bulls failed as the bullish channel resistance worked strongly. As per the current scenario, if the price can have an impulsive daily bearish candle close below 0.7250 to 0.7240 area, the bears may push the price down towards 0.7180 to 0.7160 area in the process. So, if the price can break below 0.7180 to 0.7160 area with a daily bearish candle, the bears may sustain the bearish pressure towards 0.7030 to 0.7000 area in the days ahead.
Image: NZDUSD Daily Chart
Alternatively, if the price bounced upward from 0.7180 to 0.7160 area with an impulsive daily bullish candle, the bulls may regain momentum and push the price higher towards 0.7240 to 0.7250 area as a first target. The second target will be 0.7300 to 0.7320 area if the price can break above 0.7240 to 0.7250 area in the coming days.
Furthermore, the dynamic level of 2o EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong support to push the price upside. Besides, the Bollinger Bands middle band 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.
To conclude, as the price broke below 0.7250 to 0.7240 support level, there is a high chance that the bears may continue further lower. An impulsive daily close will help to identify the definite momentum in the coming days.