NZDUSD has become impulsive and non-volatile after bouncing from 0.7160 to 0.7170 support zone. NZDUSD found support around 0.7160 psychological area. Will bulls recover further higher? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
January 6, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.7260 area and trying to climb upward. The price also broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may face strong resistance at the Bollinger Bands upper band on the intraday chart in the coming days.
Moreover, the dollar rose today morning during the Asian session, steadying as vote tallying proceeds for the U.S. Senate runoff election in the territory of Georgia and investors anticipating the outcomes to decide market emotion’s best course of action. Besides, The U.S. Dollar Index, which tracks the dollar against a bunch of different currencies, edged up 0.15% to 89.547 by 4:16 AM GMT (11:16 PM ET), quickly declining to a new ten-month low prior in the session.
On the other hand, official information appeared on Thursday that the number of new building assents gave in New Zealand fell suddenly a month ago. In a narration, Statistics New Zealand said that New Zealand building agrees tumbled to an occasionally adjusted 0.6%, from 1.4% in the former month. Investigators had anticipated that New Zealand Building compliances should ascend to 1.7% a month ago.
NZDUSD Found Support as Bulls Are Optimistic
NZDUSD is currently residing near 0.7260 area and trying to recover upward. However, the price is currently facing strong resistance at the Bollinger Bands upper band on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD found support and currently trading around 0.7260 area. As per the current price action, if the price can have an impulsive bullish candle close above 0.7230 to 0.7240 area, the bulls may recover higher towards 0.7290 to 0.7300 area in the process. Alternatively, if the price breaks below 0.7240 to 0.7230 area with an impulsive bearish candle close, the bears may regain momentum and decline towards 0.7170 to 0.7160 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support to push the price upward. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. On the contrary, the Bollinger Bands’ upper band may work as strong resistance to push the price downside.
NZDUSD May Revert Back to the Mean
According to the daily chart, NZDUSD found support and currently residing near 0.7260 area. As per the current scenario, if the price pushes further upside and rejects 0.7300 to 0.7290 resistance level with a bearish daily candle close, NZDUSD may retrace downside towards 0.7170 to 0.7160 support area. So, if the price retraces towards 0.7170 to 0.7160 area and bounced upside with a daily bullish candle, the bulls may recover higher towards 0.7290 to 0.7300 area as a first target. The second target will be 0.7390 to 0.7400 area in the process.
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 RSI line is currently residing near the overbought level 70. It indicates that the bears may regain momentum in the days ahead.
To conclude, NZDUSD may retrace down towards 0.7170 to 0.7160 area before continuing the bullish trend. A daily close is required to identify the definite momentum in the coming days.