NZDUSD has become impulsive after rejecting bullish channel resistance. NZDUSD nose dive below 0.6670 event level as investors are very optimistic about the U.S. presidential election result. Will bears decline further? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
November 4, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.6660 area and trying to push downside. After rejecting 0.6720 to 0.6740 resistance area, the bears regained momentum and pushed the price down quite aggressively. As per the current price action, the price may face strong support at the bullish channel in the coming days.
Treasuries surged in volatile trading as early U.S. election results disclosed the presidential race might be close nationally. Dashing hopes for a fast and ultimate choice. Moreover, the 10-year yield, which contacted an around five-month high of 0.94% in the early Asian session, tumbled to 0.83%. In the interim, the 30-year rate was down to 1.63% subsequent to moving to 1.75%, which quickly pushed its gap over the 5-year development to the broadest since 2016. The dollar picked up.
On the other hand, New Zealand Prime Minister Jacinda Ardern said on Saturday, she will declare her new government on Monday in the wake of offering the Green Party two ministerial portfolios outside of council as a component of a proposed collaboration arrangement. In addition, Ardern conveyed the greatest election victory recently for her middle-left Labor Party in 50 years. In spite of the fact that she, at this point, doesn’t need support to oversee, alliances are the ideal in New Zealand as parties hope to manufacture agreement.
NZDUSD Nose Dive as the U.S. Treasuries Surged Earlier
NZDUSD is currently trading around 0.6660 area and trying to decline. However, the price is currently facing strong support at the dynamic level of 20 EMA on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD nose dive and currently residing near 0.6660 area. As per the current scenario, if the price can have an impulsive bearish close below the dynamic level, the bears may sustain the bearish pressure towards 0.6600 to 0.6590 area in the process. Alternatively, if the price bounced from the dynamic level and had a bullish candle close above 0.6670 to 0.6680 area, the bulls may recover higher towards 0.6720 to 0.6740 area again in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. In contrast, the bears may sustain the bearish pressure further if the price breaks below it. Besides, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish cross over. It indicates that bears may continue lower in the process.
NZDUSD Bears Are Optimistic
According to the daily chart, NZDUSD nose dive and currently trading around 0.6660 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.6680 to 0.6670 area, the bears may decline towards 0.6600 to 0.6590 area as a first target. The second target will be 0.6510 to 0.6500 support level in the days ahead.
Image: NZDUSD Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support. On the contrary, the bears may continue further if the price breaks below it. Also, the MACD lines are sloping downward for an extended period, which indicates bulls are losing momentum slowly.
To conclude, as the U.S. presidential election is going on, we may see some volatility on the market until the result publishes. A daily close will help to identify the definite momentum in the coming days.