NZDUSD rose today morning during the Asian session and hit 21 September’s high. NZDUSD climbed over 0.6700 psychological event level. Bulls to sustains the bullish bias further? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
October 28, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.6700 area and trying to retrace downside. After the price found support at the dynamic level of 20 EMA on the intraday chart, the bulls pushed the price upside quite impulsively. As per the current price action, the price may retrace towards the dynamic level in the coming days.
The standpoint for the U.S. economy has darkened in the run-up to the presidential election, as per a Reuters survey, which indicated that an ongoing resurgence in novel Covid-19 cases ran the great danger of stopping the financial recuperation. Moreover, new Covid-19 diseases have contacted record levels in the United States at present, and the quantity of hospitalized COVID-19 Americans bounced to a two-month high, prompting to further limitations. Also, in Europe, numerous nations have likewise reimposed measures to curb the infection’s spread.
On the other hand, New Zealand Debt Management (NZDM), the Treasury unit that administers government borrowing, has issued a $4 billion bond subsequent to accepting bids of more than $18 billion. However, because of mature on May 15, 2028, the bonds have grown to maturity of 0.305% and were issued at a spread of 13 premise points on the administration’s April 15, 2027 bond.
NZDUSD Climbed Over as the Dollar Index Dropped a Record Low
NZDUSD is currently residing near 0.6700 area and trying to find support around 0.6700 to 0.6710 area. In addition, the price has faced resistance at the Bollinger Bands upper band but still maintain above the middle band.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD climbed over and currently trading around 0.6700 area. As per the current price action, if the price can have an impulsive bullish candle close above 0.6700 to 0.6710 area, the bulls may sustain the bullish bias towards 0.6780 to 0.6800 area in the days ahead. Alternatively, if the price can have an impulsive bearish candle close below 0.6700 to 0.6710 area and break below the dynamic level, the bears may decline towards 0.6655 to 0.6650 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle and lower band. So, the dynamic level may act as a strong support to push the price upside. Besides, the Bollinger Band’s middle and lower band may work as a confluence of the dynamic level in the coming days.
NZDUSD May Recover Towards March’s High
According to the daily chart, NZDUSD climbed over as the bulls are optimistic. As per the current price action, if the price can have an impulsive daily close above 0.6700 to 0.6710 area, the bulls may recover upside towards 0.6780 to 0.6800 area as a first target. The second target will be 0.6900 to 0.6920 area if the price can break above 0.6780 to 0.6800 area in the days ahead. On the contrary, if the bears had a daily candle close below 0.6700 to 0.6710, the price may retrace towards 0.6655 to 0.6650 area in the process.
Image: NZDUSD Daily Chart
Along with this, 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 strong support to push the price upside. Following, the Kijun line and the Tenkan line may work as a confluence of the dynamic level. Moreover, the price climbed over the Kumo cloud, which is another good indication of bullish continuation.
To conclude, after an extended period of volatility, the bulls were able to continue the bullish trend. A daily close is required to identify the definite momentum in the process.