NZDUSD has become impulsive and broke over January 2021’s key area. NZDUSD strikes over 0.7300 psychological key resistance area. Will bulls continue the bullish bias further 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.
February 24, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7370 area and trying to recover higher. After bouncing from 0.7160 to 0.7180 support level, the bulls pushed the price higher quite impulsively and gained almost 220 pips. As per the current price action context, the price may revert back to the mean on the daily chart in the coming days.
Furthermore, delegate Steny Hoyer, the chamber’s No. 2 Democrat, said that the U.S. House of Representatives would decide on Friday on enactment to give $1.9 trillion in new Covid-19 abatement. Hoyer also added, “The American public unequivocally supports this Coronavirus abatement bill, and we are moving quickly to see it ordered into law.” On the other hand, New Zealand revealed three fresh privately sent cases of Covid-19 on Tuesday, as the bunch in its greatest city of Auckland extended only days after specialists had to force new curbs.
NZDUSD Strikes Over as the US Dollar Index Declined
NZDUSD is currently residing near 0.7370 area and trying to push upside. However, the bulls struggled a lot to maintain the bullish momentum above 0.7300 to 0.7320 area.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD strikes over and currently trading around 0.7370 area. As per the current price action, if the price pushes further upward towards 0.7400 to 0.7420 key area and rejects with an impulsive bearish candle close, the bears may regain momentum and decline towards 0.7320 to 0.7300 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Also, the MACD lines are currently residing over the 0.00 level and may have a bearish crossover. Besides, the histograms are gradually sloping downward. Both indicate that the bears may regain momentum in the days ahead.
NZDUSD May Revert Back to the Mean
According to the daily chart, NZDUSD strikes over as the bulls are optimistic. As per the current price action, if the price climbs towards 0.7400 to 0.7420 area and rejects with a bearish candle, the price may retrace downside towards 0.7260 to 0.7250 support area in the process. So, if the price retraced towards 0.7260 to 0.7250 support area and bounced higher with an impulsive bullish candle, the bulls may sustain the bullish trend towards 0.7400 to 0.7420 area as a first target. The second target will be 0.7500 to 0.7520 key area if the price can break over 0.7400 to 0.7420 area in the coming days.
Image: NZDUSD Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price down 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 bullish momentum, the price requires a downside retracement. A daily close will help to identify the definite momentum in the coming days.