NZDUSD has become impulsive and non-volatile after bouncing from 0.7150 to 0.7160 support area. NZDUSD found support around 0.7150 psychological event level. Will it sustain the bullish bias further in the day ahead? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
January 13, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7225 area and trying to retrace downside. After bouncing from 0.7150 to 0.7160 area last week, the bulls pushed the price upward quite impulsively, but failed to break over 0.7300 to 0.7310 key level. As per the current price action, the price may face strong support at the Kumo Cloud on the intraday chart in the coming days.
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NZDUSD Found Support as the US Dollar Index Weakens
NZDUSD is currently residing near 0.7225 area and trying to decline. However, the price broke above the dynamic level of 20 EMA on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD found support and currently trading around 0.7225 area. As per the current price action, if the price retraces downside towards Senkou Span B and bounced upside, the bulls may recover higher towards 0.7300 to 0.7310 resistance area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Tenkan line. So, the dynamic level may act as a strong support to push the price higher. Besides, the Tenkan line may work as a confluence of the dynamic level in the days ahead. Also, the Kumo Cloud may hold the price as strong support and push upside in the process.
NZDUSD May Recover Towards 2018’s High
According to the daily chart, NZDUSD found support as bulls are optimistic. As per the current scenario, if the price can have a daily candle close above 0.7230 area, the bulls may recover higher towards 0.7300 to 0.7310 area as a first target. The second target will be 0.7390 to 0.7400 area if the price breaks above 0.7300 to 0.7310 area in the coming days.
Image: NZDUSD Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. It may carry the price as strong support in the process. Also, the MACD lines are currently residing above the 0.00 level and gradually climbing upside. It indicates that bulls may sustain the bullish trend further in the days ahead.
To conclude, after retracing towards the dynamic level, the price had an impulsive daily bullish candle close yesterday. Another daily close is required to identify the definite momentum in the coming days.