NZDUSD has become volatile and corrective after rejecting 0.7120 to 0.7100 area. NZDUSD sustains below 0.7100 key resistance area. Bears to regain momentum in the days ahead? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
December 16, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.7090 area and trying to push lower. The bulls pushed the price higher at the beginning of this week, but failed to break above 0.7100 to 0.7120 area and had a bearish pin bar close. As per the current price action, NZDUSD may revert back to the mean in the coming days.
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NZDUSD Sustains Below as the Price Requires a Downside Retracement
NZDUSD is currently residing around 0.7090 area and trying to decline. However, the price is still residing above the dynamic level of 20 EMA on the Intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD sustains below and currently trading around 0.7090 area. As per the current price action, if the price can break below the dynamic level with an impulsive bearish candle close, the bears may regain momentum and decline towards 0.7010 to 0.7000 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. So, the bears may regain momentum if the price can break below the dynamic level in the process. Also, the MACD lines are currently residing above 0.00 level and gradually sloping down. It indicates that bears may regain momentum in the coming days.
NZDUSD May Revert Back to the Mean
According to the daily chart, NZDUSD sustains below as the price requires a downward retracement before continuing the bullish trend. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7120 to 0.7100 area, the price may retrace downside towards 0.7010 to 0.7000 area in the process. So, if the price retraces towards 0.7010 to 0.7000 area and bounced upward, the bulls may sustain the bullish trend towards 0.7100 to 0.7120 area as a first target. The second target will be 0.7240 to 0.7250 area.
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 an extended period of bullish momentum, NZDUSD requires a downside retracement before continuing the bullish bias further. A daily close is required to identify the definite momentum in the coming days.