NZDUSD bears have regained momentum after rejecting 0.7460 to 0.7450 key resistance level. NZDUSD sustains below 0.7300 psychological event level. Will it decline further downside 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.
March 3, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7292 area and trying to recover higher. After bouncing from 0.7200 to 0.7220 support level, the bulls pushed the price upside quite impulsively. However, failed to break over 0.7300 to 0.7310 resistance area. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the daily chart in the coming days.
Moreover, the United States faces a $2.59 trillion setback in foundation needs that require an enormous bounce in government spending to address disintegrating streets, bridges, and other different projects, as per an evaluation by engineers issued on Wednesday. On the other hand, on Monday, the Mayor of Auckland said that its inhabitants ought to be focused on vaccines after it was hurled into its fourth lockdown over the course of the end of the week costing millions of dollars daily.
NZDUSD Sustains Below as the Volatility Increased
NZDUSD is currently residing near 0.7292 area and trying to push higher. However, the price is also currently facing support at the dynamic level on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD sustains below and currently trading around 0.7292 area. As per the current price action, if the price pushes upside and breaks over 0.7300 to 0.7310 resistance area with an impulsive bullish candle, the bulls may recover higher towards 0.7450 to 0.7460 key area in the coming days. Alternatively, if the price faces resistance around 0.7310 to 0.7300 area and had an impulsive bearish candle close, the bears may regain momentum and decline towards 0.7220 to 0.7200 area again in the process.
Furthermore, the dynamic level of 20 EMA is currently residing near the price. So, it may work as strong support to push the price upside if the price can break above 0.7300 to 0.7310 resistance level. On the contrary, the dynamic level may work as strong resistance if the price can have an impulsive bearish candle close below it. Also, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. It indicates that the bulls may sustain the bullish pressure further in the days ahead.
NZDUSD Bullish Trend May Continue Further
According to the daily chart, NZDUSD sustains below, but the overall bias is still bullish. As per the current price action context, if the price can break above 0.7300 to 0.7310 area with an impulsive bullish candle close, the bulls may continue the bullish trend towards 0.7450 to 0.7460 area as a first target. The second target will be 0.7580 to 0.7600 area if the price can break above 0.7450 to 0.7460 area in the coming days.
Image: NZDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may work as strong support to push the price upside. Besides, the Kijun line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing over the uptrend line, the bias will remain bullish. A daily close is needed to identify the definite momentum in the coming days.