NZDUSD has become corrective, but still holding the bearish momentum below 0.7250 to 0.7230 area. NZDUSD sustains below 0.7250 psychological event area. Will the bears push the price down 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 19, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7210 area and trying to push downside. After bouncing from 0.7150 to 0.7160 support level, the bulls have regained momentum and pushed the price upward, but failed to hold the bullish pressure over 0.7230 to 0.7250 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.
NZDUSD Sustains Below as the Psychological Resistance Level Working Strongly
NZDUSD is currently residing near 0.7210 area and trying to push lower. However, the Kumo Cloud is still holding the price as strong support on the daily chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD sustains below and currently trading around 0.7210 area. As per the current price action, if the price can have an impulsive bearish candle close below the dynamic level of 20 EMA, the bears may sustain the bearish pressure towards 0.7160 to 0.7150 support area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downward in the process. Along with this, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. Besides, the histogram has created a bearish divergence. Both indicate that the bears may continue the bearish pressure further in the days ahead.
NZDUSD Bulls Are Still Optimistic
According to the daily chart, NZDUSD sustains below and currently residing near 0.7210 area. As per the current price action context, if the price can have an impulsive daily bearish candle close below the dynamic level, the bears may push the price down towards 0.7160 to 0.7150 area as a first target. The second target will be 0.7070 to 0.7050 area if the price can break below 0.7160 to 0.7150 support area in the coming days. On the other hand, if the price bounced upside from the dynamic level and had a daily bullish candle close above 0.7280 to 0.7300 area, the bulls may regain momentum and recover higher towards 0.7430 to 0.7450 key area in the process.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing near the price. Along with the Tenkan line. So, the dynamic level may work as strong resistance if the price can have a bearish candle close below it. Besides, the Tenkan line may work as a confluence of the dynamic level in the coming days. However, the Kijun line and the Kumo Cloud are still residing below the price, which may work as strong support to push the price higher in the process.
To conclude, as long as the price residing over the Kumo Cloud, the bias will remain bullish. An impulsive breakout is needed to identify the definite momentum in the coming days.