NZDUSD rose today morning during the Asian session against the U.S. Dollar. NZDUSD sustains below 0.6650 psychological resistance level. Will bears continue lower? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
October 21, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.6610 area and trying to push upside. However, the price broke above the dynamic level of 20 EMA on the intraday chart, but the nearest resistance is 0.6610 to 0.6615 area. As per the current price action, the price may face strong resistance around 0.6610 to 0.6615 area in the coming days.
U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi moved nearer to a contract to a new Covid-19 relief package during a 45-minute chat on Tuesday, Pelosi’s representative Drew Hammill said on Twitter. Hammill also said talks would continue on Wednesday, and “both sides are serious about finding a settlement.”
On the other hand, Prime Minister Ardern’s Labor Party held a directing in New Zealand’s overall election on Saturday, early tallies displayed. Moreover, labor had half of the votes, to 26% for the opposition National Party drove by protective pioneer Judith Collins, with 1.5% of ballots counted, as per the Electoral Commission. Of Labor’s present alliance accomplices, the nationalist New Zealand First Party hosted 2.2% and the Green Party 8.8%.
NZDUSD Sustains Below as the Overall Bias Is Still Bearish
NZDUSD is currently residing near 0.6610 area and facing resistance around 0.6610 to 0.6615 area. However, the price still sustains below the dynamic level of 20 EMA on the daily chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD sustains below and currently trading around 0.6610 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.6610 to 0.6615 resistance area, the bears may regain momentum and decline towards 0.6555 to 0.6550 area in the days ahead. Alternatively, if the price pushes further higher and breaks above 0.6610 to 0.6615 area with an impulsive bullish candle close, bulls may recover higher towards 0.6650 to 0.6660 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may hold the price as strong support. However, the bears may regain momentum if the price can break below the dynamic level in the coming days. Besides, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish intersection. It indicates that bears may regain momentum in the process.
NZDUSD Bears Are Still Optimistic
According to the daily chart, NZDUSD sustains below the dynamic level of 20 EMA and currently trading around 0.6610 area. As per the current price action, if the price can have a daily close below 0.6610 to 0.6615 area, the bears may sustain the bearish pressure towards 0.6555 to 0.6550 area as a first target. The second target will be 0.6500 to 0.6490 area if the price can break below 0.6555 to 0.6550 area in the coming days. Conversely, if the price breaks above 0.6610 to 0.6615 area with an impulsive daily bullish candle close, the bulls may recover higher towards 0.6650 to 0.6660 area in the process.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance to push the price downward. Also, the MACD lines are currently residing below 0.00 level and gradually sloping downside. It indicates that bears may sustain the bearish pressure further in the days ahead.
To conclude, as long as the price sustains below 0.6650 to 0.6660 area, the bias will remain bearish. A daily close will help to identify the definite momentum in the coming days.