NZDUSD bulls have regained momentum after bouncing from 0.7150 to 0.7160 support area. NZDUSD surged over 0.7300 psychological resistance level. Will the price continue further upward 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.
May 26, 2021, | AtoZ Markets - NZDUSD is currently trading around 0.7310 area and trying to recover higher. After having an impulsive daily bullish candle close above 0.7150 to 0.7160 support level, the bulls pushed the price upside impulsively and broke over 0.7280 to 0.7300 significant event area. As per the current price action, the price may face strong resistance at the bullish channel on the intraday chart in the coming days.
NZDUSD Surged Over as the Bulls Are Optimistic
NZDUSD is currently residing near 0.7310 area and trying to push higher. However, the price also broke over the dynamic level of 20 EMA on the daily chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD surged over and currently trading around 0.7310 area. As per the current price action context, the price may recover higher towards the bullish channel resistance in the process. So, if the price can have an impulsive bearish candle close below 0.7300 to 0.7280 area after rejecting the bullish channel resistance, the bears may regain momentum and push the price down towards 0.7200 to 0.7180 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price higher. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 after having a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
NZDUSD May Sustain the Bullish Pressure Further
According to the daily chart, NZDUSD surged over and currently trading around 0.7310 area. As per the current scenario, if the price can have an impulsive bullish candle close above 0.7280 to 0.7300 resistance area, the bulls may continue the bullish pressure further towards 0.7430 to 0.7450 key area in the coming days. On the contrary, if the price rejects 0.7300 to 0.7280 area with a daily bearish candle close, the bears may regain momentum and push the price down towards 0.7200 to 0.7180 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 Bollinger Bands middle band. So, the dynamic level may push the price upside as strong support. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands upper band is currently residing near the price, which may work as strong resistance in the days ahead.
To conclude, after an extended period of volatility, the price has climbed over 0.7280 to 0.7300 resistance area. A daily close will help to identify the definite momentum in the coming days.