NZDUSD has become volatile, but the bears are still holding the bearish momentum below 0.7230 to 0.7200 area. NZDUSD faced resistance around 0.7200 psychological event area. Will bears 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.
April 21, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7172 area and trying to push higher. After breaking above 0.7100 to 0.7120 resistance area, the bulls push the price higher quite impulsively and hit 0.7200 to 0.7230 area again. However, the price has rejected 0.7230 to 0.7200 area with a daily bearish pin bar. As per the current price action, the price may retrace 50% of the daily bearish pin bar in the coming days.
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NZDUSD Faced Resistance as the Event Level Worked Strongly
NZDUSD is currently residing near 0.7172 area and trying to retrace upward. However, the price is still residing over the dynamic level of 20 EMA on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD faced resistance and currently trading around 0.7172 area. As per the current scenario, the price may retrace higher towards 0.7200 to 0.7230 area in the process. So, if the price retraced towards 0.7200 to 0.7230 area and rejected with an impulsive bearish candle, the bears may regain momentum and push the price downside towards 0.7120 to 0.7100 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 MACD lines are currently residing above the 0.00 level after having a bearish crossover. Besides, the histogram has created a bearish divergence. Both indicate that the bears may regain momentum in the coming days.
NZDUSD Bears May Regain Momentum
According to the daily chart, NZDUSD faced resistance as the bears are optimistic. As per the current price action, if the price can have an impulsive bearish candle close below the bearish pin bar’s low, the bears may push the price down towards 0.7120 to 0.7100 area as a first target. The second target will be 0.6980 to 0.6950 area if the price can break below 0.7120 to 0.7100 area in the coming days.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price downside as a mean reversion. Besides, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish crossover. It indicates that the bears may regain momentum in the process.
To conclude, after an extended period of bullish momentum, the price has found resistance around 0.7200 to 0.7230 area. A daily close will help to identify the definite momentum in the coming days.