NZDUSD has become impulsive and non-volatile after bouncing from 0.7100 to 0.7110 support level. NZDUSD surged over 0.7170 psychological resistance area. Will bulls continue the bullish pressure further in the process? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
December 30, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.7180 area and trying to recover higher. After bouncing from 0.7100 to 0.7110 area, the bulls pushed the price higher quite impulsive and had a 4-hour bullish candle close above 0.7160 to 0.7170 area. As per the current price action, NZDUSD may reach April 2018’s high in the days ahead.
Moreover, the Federal Reserve said on Tuesday; it had expanded the end date for its Main Street Lending Scheme by eight days to handle a surge of appeals submitted since the Trump organization said it was ending the crisis credit flexibility and a few others set up by the U.S. National bank. Besides, the Fed said in a statement that the project, aimed at little and average-sized organizations needing credit to get by the recession set off by the Covid-19 pandemic, will stay open until January 8 as opposed to shutting on December 31, as initially reported by U.S. Depository Secretary Steven Mnuchin in November.
On the other hand, New Zealand’s economy has bounced back firmly from recession in the fourth quarter, accomplishing a supposed V-shaped recuperation as enormous fiscal and financial stimulus filled consumer spending.
NZDUSD Surged Over as the New Zealand Economy Bounced Back
NZDUSD is currently residing near 0.7180 area and trying to push upside. However, the price is still residing far above the Kumo Cloud on the daily chart.
Image: NZDUSD 4-hour Chart
According to the 4-hour chart, NZDUSD surged over and currently residing near 0.7180 area. As per the current price action, if the price can have another impulsive bullish candle close over 0.7160 to 0.7170 area, the bulls may recover higher towards 0.7240 to 0.7250 area in the process. Alternatively, if the price breaks below 0.7170 to 0.7160 area with an impulsive bearish candle close, the bears may regain momentum and decline towards 0.7110 to 0.7100 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward in the coming days. Besides, the MACD lines are currently residing above the 0.00 level and moving upside. It indicates that bulls may sustain the bullish pressure further in the days ahead.
NZDUSD Bulls Are Optimistic
According to the daily chart, NZDUSD surged over as bulls are still optimistic. As per the current scenario, if the price can have an impulsive daily bullish candle close above 0.7160 to 0.7170 area, the bulls may continue the bullish trend towards 0.7240 to 0.7250 area as a first target. The second target will be 0.7290 to 0.7300 area if the price breaks above 0.7240 to 0.7250 area in the days ahead.
Image: NZDUSD Daily Chart
Furthermore, 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 act as a strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after retracing towards the dynamic level on the daily chart, the bulls have regained momentum and strike higher. A daily close is required to identify the definite momentum in the coming days.