NZDUSD has become corrective but still holding the bias above the dynamic level. NZDUSD sustains the bullish trend above 0.6780 to 0.6800 support area. Can break 2018″s key resistance level? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
November 18, 2020, | AtoZ Markets – NZDUSD is currently trading around 0.6895 and trying to climb upside. The price faced resistance several times around 0.6900 to 0.6915 area, but the bulls are still trying to recover higher. As per the current price action, the price may retrace towards the dynamic level of 20 EMA on the daily chart in the coming days.
NZDUSD Sustains the Bullish Bias as Investors Are Optimistic
NZDUSD is currently residing near 0.6895 area and trying to push upward. Moreover, the price also faced resistance at the Bollinger Bands’ upper band on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD sustains bullish and currently trading around 0.6895 area. As per the current price action, if the price rejects 0.6900 to 0.6915 resistance area again and had an impulsive bearish candle close below it, the bears may push the price downside towards 0.6800 to 0.6780 area in the days ahead. Alternatively, if the price breaks above 0.6900 to 0.6915 area impulsively, the bulls may continue the bullish pressure towards 0.6950 to 0.6960 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands’ middle band. The dynamic level may act as strong support to push the price upward. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands’ upper band still residing above the price, which may work as strong resistance again.
NZDUSD May Revert Back to the Mean
According to the daily chart, NZDUSD sustains bullish as investors are optimistic. As per the current scenario, if the price can have an impulsive bearish candle close below 0.6915 to 0.6900 area, the price may retrace downside towards 0.6800 to 0.6780 area in the process. So, if the price retraces downside and bounced upside from 0.6800 to 0.6780 support level, the bulls may recover higher towards 0.6900 to 0.6915 area as a first target. The second target will be 0.7040 to 0.7050 area if the price breaks above 0.6900 to 0.6915 area in the coming days.
Image: NZDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price downside as a mean reversion. Also, the MACD lines are currently residing above the 0.00 level and may have a bearish intersection. Besides, the RSI line is currently residing near the overbought level 7o. Both indicate that the price may retrace downside in the days ahead.
To conclude, after an extended period of bullish momentum, the price may retrace at least towards the dynamic level before continuing the bullish trend. A daily close is required to identify the definite momentum in the coming days.