NZDUSD bears have regained momentum after rejecting 0.7270 to 0.7250 resistance area. NZDUSD nose dive below 0.7000 psychological support level. Will it decline further downside 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 24, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.6975 area and trying to push lower. After rejecting 0.7270 to 0.7250 resistance level, the bears pushed the price downside quite impulsively and broke below 0.7020 to 0.7000 event level with a daily bearish candle. As per the current price action, the price may revert back to the mean on the intraday chart in the coming days.
Moreover, the U.S. Treasury said Yesterday that it would outpouring further direction on a challenged arrangement of President Joe Biden’s $1.9 trillion Covid-19 abatement packages that restrict states from utilizing stimulus cash to displace income lost to tariff cuts. On the other hand, New Zealand’s Trade Balance (MoM) and (YOY) report came positive, whereas import and export have declined.
NZDUSD Nose Dive As the U.S. Dollar Index Continues Bullish Bias
NZDUSD is currently residing near 0.6975 area and trying to decline. The price also broke below the dynamic level of 20 EMA on the daily chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD nose dive and currently trading around 0.6975 area. As per the current price action, if the price can have a bearish candle below the last candle’s low, the bears may sustain the bearish pressure towards 0.6920 to 0.6900 area in the days ahead. Alternatively, if the price can have a bullish candle over the last candle’s high and break above 0.7000 to 0.7020 area, the price may retrace towards 0.7100 to 0.7120 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may pull the price upside as a mean reversion. Moreover, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the price may retrace upward in the days ahead.
NZDUSD May Decline Further Lower
According to the daily chart, NZDUSD Nose dive as the bears are optimistic. As per the current price action context, the bears may push the price down towards 0.6920 to 0.6900 area in the process. So, if the price declines towards 0.6920 to 0.6900 area and bounced upside with an impulsive bullish candle close, the bull may recover higher towards 0.7100 to 0.7120 area in the coming days.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing over the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price upward as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an extended period of volatility, the bears have successfully regained momentum. The price requires an upside retracement before continuing the bearish pressure further in the coming days.