NZDUSD Facing Resistance Around 0.7100 Area – Bears to Regain Momentum?


NZDUSD has become volatile after rejecting 0.7080 to 0.7100 key resistance level. NZDUSD is facing resistance around 0.7100 psychological 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.

December 9, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.7060 area and trying to recover higher. The price broke above the dynamic level of 20 EMA on the intraday chart after an extended period of volatility. However, the bulls have achieved more than 500 pips after bouncing from 0.6550 to 0.6600 support level. As per the current price action, NZDUSD may face a strong resistance again around 0.7080 to 0.7100 area in the days ahead.

NZDUSD Facing Resistance as the Key Level Working Strongly

NZDUSD is currently residing near 0.7060 area and trying to climb upside. However, the price found support on the bullish trend line and bounced upward on the intraday chart.

NZDUSD Facing Resistance

Image: NZDUSD 4 Hour Chart

According to the 4-hour chart, NZDUSD facing resistance around 0.7060 area and trying to push upside. As per the current price action, if the price can have an impulsive bullish candle close above the uptrend line, the bulls may recover higher towards 0.7080 to 0.7100 area in the process. So, if the price recovers higher towards 0.7080 to 0.7100 area and rejects again, the bears may regain momentum and decline towards 0.6970 to 0.6950 support area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward. So, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Also, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping down. It indicates that bears may regain momentum in the coming days.

NZDUSD May Revert Back to the Mean

According to the daily chart, NZDUSD facing resistance as the price requires a downside retracement. As per the current price action, if the price pushes further higher and rejects again from 0.7080 to 0.7100 area, NZDUSD may retrace towards 0.6970 to 0.6950 area in the process. So, if the price reaches 0.6970 to 0.6950 area and bounced upside, the bulls may continue the bullish trend towards 0.7080 to 0.7100 area as a first target. The second target will be 0.7180 to 0.7200 key level if the price breaks above 0.7080 to 0.7100 area in the process.

NZDUSD Facing Resistance

Image: NZDUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Besides, the MACD lines are currently residing above 0.00 level and had a bearish intersection. It indicates that bears may regain momentum in the days ahead.

To conclude, after an extended period of bullish momentum, the price requires a downside retracement before bulls continue the bullish trend further. A daily close is required to identify the definite momentum in the coming days. 

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