NZDUSD has become impulsive and non-volatile after bouncing from 0.6580 to 0.6600 support zone. NZDUSD strikes above 0.6650 area and had a daily bullish candle close above it. Bulls to sustain the bullish pressure? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
October 14, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.6660 area and trying to push upside. The price also found support at the dynamic level of 20 EMA on the intraday chart. As per the current price action, NZDUSD may face strong resistance around 0.6670 to 0.6675 area in the coming days.
San Francisco Fed President Mary Daly said on Tuesday, “The U.S. Central bank’s promise to keep interest rates close to zero for what could be years is “suitable” for the time being, however, more action could be required as the recuperation continues.” Mary Daly also added, “We have the economy and the policy in a decent position at this moment. I see us too situated to endure this hardship we are in, and it is not yet clear if more will be required … I’ll keep on viewing the information and check whether alterations will be necessary.”
NZDUSD Strikes Above as the Dynamic Level Hold the Price as Strong Support
NZDUSD is currently residing near 0.6660 area and trying to recover higher. Moreover, the price also broke above the Kijun line and the Tenkan line quite impulsively on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD strikes above and currently trading around 0.6660 area. As per the current price action, if the price pushes further upward and breaks above 0.6670 to 0.6675 resistance with an impulsive bullish candle, the bulls may sustain the bullish pressure towards 0.6700 to 0.6710 area in the coming days. Alternatively, if the price rejects 0.6670 to 0.6675 resistance area and breaks below 0.6658 to 0.6650 with an impulsive bearish candle close, the bears may regain momentum and decline towards 0.6600 to 0.6580 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as a strong support to push the price further upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
NZDUSD Bulls to Reach September’s High
According to the daily chart, NZDUSD strikes above with an impulsive daily bullish candle. As per the current price action, if the price breaks above 0.6670 to 0.6675 area, the bulls may recover higher towards 0.6700 to 0.6710 area as a first target. The second target will be 0.6780 to 0.6800 key resistance area if the price break above 0.6700 to 0.6710 area in the coming days. In contrast, if the price reaches 0.6700 to 0.6710 area and rejects, the bears may regain momentum and may decline towards 0.6600 to 0.6580 area in the process.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may work as strong support in the coming days. Also, the RSI line is currently residing below the overbought level 70 and gradually moving upwards. It indicates that the price may recover further in the days ahead.
To conclude, as long as the price sustains above 0.6580 to 0.6600 support zone, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.