NZDUSD has become impulsive and non-volatile after bouncing from 0.7100 to 0.7120 support level. NZDUSD remains over 0.7100 psychological support level. Will the price strike further higher 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.
June 16, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7145 area and trying to climb further. After breaking below 0.7170 to 0.7160 event area, the bears pushed the price downside quite impulsively, but failed to continue the bearish pressure below 0.7120 to 0.7100 significant support level. As per the current price action, the price may face strong resistance around 0.7170 to 0.7160 area in the coming days.
NZDUSD Remains Over as the Support Level Working Strongly
NZDUSD is currently residing near 0.7145 area and trying to push upside. However, the price also broke above the dynamic level of 20 EMA on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD remains over and currently trading around 0.7145 area. As per the current price action, the price may recover higher towards 0.7160 to 0.7170 area in the process. So, if the price recovers towards 0.7170 to 0.7160 area and rejects with an impulsive bearish candle close, the bears may regain momentum and push the price downside towards 0.7120 to 0.7100 area in the coming days. On the contrary, if the price can break above 0.7160 to 0.7170 resistance area with an impulsive bullish candle, the bulls may regain momentum and push the price upside towards 0.7210 to 0.7220 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing near the price. So, it may work as strong resistance if the price can have an impulsive bearish candle close below it. On the other hand, it may work as strong support if the price can have a bullish candle close above it. Also, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. Besides, the histogram has created a bullish divergence. Both indicate that the bulls may continue the bullish pressure further in the days ahead.
AUDUSD Bears May Continue Lower
According to the daily chart, NZDUSD remains over, but the bears are still optimistic. As per the current scenario, the price may retrace higher towards 0.7160 to 0.7170 area in the process. So, if the price retraced upside and rejects with an impulsive daily bearish candle, the bears may push the price down towards 0.7120 to 0.7100 area as a first target. The second target will be 0.7020 to 0.7000 area if the price can break below 0.7120 to 0.7100 support level in the coming days.
Image: NZDUSD Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price down. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. Along with this, the Kumo Cloud is still holding the price as strong resistance, which indicates that the bears may continue further downward in the days ahead.
To conclude, as long as the price residing below the dynamic level, the bias will remain bearish. An impulsive daily close is needed to identify the definite momentum in the coming days.