April 14, 2021, | AtoZ Markets - NZDUSD is currently trading around 0.7100 area and trying to push upside. After bouncing from 0.6950 to 0.6970 support level, the bulls have regained momentum and pushed the price higher quite impulsively and reached 0.7100 to 0.7120 resistance area. As per the current price action, the price may face strong resistance around 0.7100 to 0.7120 area in the coming days.
Moreover, New Zealand's national bank flagged it is in no hurry to eliminate monetary boost. Saying the viewpoint remains questionable as the economy, bit by bit, recuperates from the Covid-19 pandemic. On the other hand, Katherine Tai, the U.S. trade czar, is meeting with associations, industry chiefs, and advocacy communities. As Washington faces mounting strain to back an impermanent waiver of intellectual wealth rights to speed up COVID-19 immunizations all over the world.
NZDUSD Climbed Above as the Price Requires an Upside Retracement
NZDUSD is currently residing near 0.7100 area and trying to climb further. However, the price also broke over the dynamic level of 20 EMA on the daily chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD climbed above and currently trading around 0.7100 area. As per the current scenario, if the price breaks above 0.7100 to 0.7120 area with a bullish candle, the bulls may sustain the bullish pressure towards 0.7180 to 0.7200 area in the process. Alternatively, if the price rejects 0.7120 to 0.7100 area with a bearish candle, the bears may regain momentum and decline towards 0.6970 to 0.6950 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. Along with this, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the coming days.
NZDUSD Bears May Regain Momentum
According to the daily chart, NZDUSD climbed above and currently trading around 0.7100 area. As per the current price action, if the price can have a daily bearish candle below 0.7120 to 0.7100 area, the bears may regain momentum and push the price down towards 0.6970 to 0.6950 area as a first target. The second target will be 0.6870 to 0.6850 area if the price can break below 0.6970 to 0.6950 area in the coming days.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the price needs to break below the dynamic level and the Bollinger Bands' middle band to sustain the bearish bias in the days ahead. However, the Bollinger Bands' upper band is still residing above the price, which may work as strong resistance in the process.
To conclude, after an impulsive bearish momentum, the price is currently retracing higher. As the overall bias is still bearish, there is a high chance that NZDUSD may continue the bearish bias further in the coming days.