NZDUSD has become impulsive and non-volatile after bouncing from 0.7150 to 0.7160 support level. NZDUSD sustains over 0.7200 psychological event level. Bulls to continue the bullish bias further 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.
February 3, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7220 and trying to push upside. After bouncing from 0.7000 to 0.7020 support level, the bulls pushed the price upward quite impulsively, but failed to break over 0.7300 to 0.7310 key level and declined. As per the current price action, the price may face strong resistance around 0.7220 to 0.7230 area in the process.
Along with this, a previous authority at the Office of the U.S. Exchange Representative (USTR) said that the trade would be a piece of President Joe Biden’s general negotiation strategy with China, yet it won’t be the main impetus in Sino-U.S. relations. Since it was underneath the previous President Donald Trump. On the other hand, New Zealand and China signed an agreement on updating the reciprocal Free Trade Agreement (FTA) between the two nations, China’s official Xinhua news office wrote last week.
NZDUSD Sustains Over as the Bulls Are Still Optimistic
NZDUSD is currently residing near 0.7220 area and trying to recover upward. However, the price also broke above the dynamic level of 20 EMA on the intraday chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD sustains over and currently trading around 0.7220 area. As per the current price action, if the price can break above 0.7220 to 0.7230 area with an impulsive bullish candle, the bulls may sustain the bullish pressure towards 0.7300 to 0.7310 key area in the coming days. Alternatively, if the price rejects 0.7230 to 0.7220 area with an impulsive bearish candle close, the bears may regain momentum and decline towards 0.7160 to 0.7150 area again in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside in the days ahead. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that bears may regain momentum in the coming days.
NZDUSD May Recover Higher
According to the daily chart, NZDUSD sustains over as the overall bias is still bullish. As per the current scenario, if the price can break above 0.7220 to 0.7230 area with an impulsive daily bullish candle, the bulls may recover higher towards 0.7300 to 0.7310 area as a first target. The second target will be 0.7380 to 0.7400 area if the price breaks over 0.7300 to 0.7310 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 and the Tenkan line. Therefore, the dynamic level may act as a strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing over 0.7150 to 0.7160 support level, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.