NZDUSD has become impulsive and non-volatile after rejecting 0.7175 to 0.7170 area. NZDUSD faced resistance around 0.7175 significant event area. Bears to regain momentum 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.
May 5, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7155 area and trying to push downside. After an impulsive bearish momentum, the price has successfully retraced towards 0.7170 to 0.7175 resistance area. As the overall momentum is bearish, the bears have regained momentum and continue the bearish pressure after retracing towards 0.7175 to 0.7170 area. As per the current price action, the price may face strong support around 0.7125 to 0.7115 area in the coming days.
NZDUSD Faced Resistance as the Bears Are Still Optimistic
NZDUSD is currently residing near 0.7155 area and trying to push lower. However, the price also faced resistance at 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 0.7155 area. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7175 to 0.7170 resistance area, the bears may sustain the bearish pressure towards 0.7125 to 0.7115 area in the coming days. So, if the price declines towards 0.7125 to 0.7115 support level and bounced upside with a bullish candle close, the bulls may regain momentum and recover higher towards 0.7170 to 0.7175 area as a first target. The second target will be 0.7210 to 0.7220 area if the price can break over 0.7170 to 0.7175 resistance area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price, which has already worked as strong resistance. Besides, the Bollinger Bands middle band also worked as a confluence of the dynamic level. However, the Bollinger Bands’ lower band is currently residing close to the nearest support level. So, it may also work as strong support to push the price higher in the process.
NZDUSD May Decline Further
According to the daily chart, NZDUSD faced resistance as the overall momentum is bearish. As per the current price action context, if the price can break below 0.7125 to 0.7115 area with a daily bearish candle close, the bears may continue further lower towards 0.6970 to 0.6950 area in the process. On the contrary, if the price can break over 0.7170 to 0.7175 area with an impulsive bullish candle close, the bulls may regain momentum and push the price upward towards 0.7265 to 0.7285 key area in the coming days.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. Also, the MACD lines are currently residing over the 0.00 level and may have a bearish crossover. It indicates that the bears may sustain the bearish pressure further in the process.
To conclude, as the price had an impulsive daily bearish candle close below the dynamic level of 20 EMA, there is a high chance that the bears may continue to push the price further downside in the days ahead.