NZDUSD has become volatile and corrective after breaking below 0.7040 to 0.7000 support level. NZDUSD is holding the bearish bias below 0.7000 event area. Will bears push the price lower 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.
March 31, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.6975 area and trying to push downside. After rejecting 0.7300 to 0.7250 resistance area, the bears pushed the price downside quite impulsively and broke below December 2020’s low. As per the current price action, the price may face strong support around 0.6920 to 0.6900 area in the coming days.
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NZDUSD Holding the Bearish Bias as the Price Requires a Downside Retracement
NZDUSD is currently residing near 0.6975 area and trying to decline further. However, the dynamic level of 20 EMA is holding the price as resistance on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD is holding the bearish bias and currently trading around 0.6975 area. As per the current scenario, if the price can have an impulsive bearish candle close below the last candle’s low, the bears may continue the bearish pressure further towards 0.6920 to 0.6900 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside in the process. Also, the MACD lines are currently residing below the 0.00 level and may have a bearish crossover. It indicates that the bears may sustain the bearish pressure further in the days ahead.
NZDUSD Bulls May Regain Momentum
According to the daily chart, NZDUSD holding the bearish bias as the bears are optimistic. As per the current price action context, the bears may continue the bearish pressure towards 0.6920 to 0.6900 area in the coming days. So, if the price declines towards 0.6920 to 0.6900 support level and bounced upside with an impulsive daily bullish candle, the bulls may regain momentum and recover higher towards 0.7080 to 0.7100 area as a first target. The second target will be 0.7250 to 0.7300 area if the price can break above 0.7080 to 0.7100 area in the process.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may pull the price upward as a mean reversion. Along with this, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.
To conclude, after an impulsive bullish momentum, the price is now retracing lower. If 0.6920 to 0.6900 area holds the price as strong support, there is a high chance that the bulls may regain momentum in the coming days.