NZDUSD has become corrective after rejecting 0.7310 to 0.7300 psychological key level. NZDUSD volatility increased below 0.7250 resistance area. Bears to regain momentum 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 10, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7235 area and trying to push lower. After bouncing from 0.7100 to 0.7120 support level, the bulls pushed the price upward quite impulsively, but failed to break over 0.7240 to 0.7250 event area. As per the current price action, the price may face strong resistance again around 0.7250 to 0.7240 area in the days ahead.
Moreover, U.S. President Joe Biden said yesterday that he concurred with a proposition by Democratic legislators that would restrict or eliminate stimulus payments to higher-earnings people as a feature of his $1.9 trillion Covid-19 remission bills. On the other hand, New Zealand said last week that it will begin getting refugees again on this ongoing month, almost a year after it shut its boundaries to prevent the spread of the COVID-19 pandemic.
NZDUSD Volatility Increased as the Bulls Are Losing Momentum
NZDUSD is currently residing near 0.7235 area and trying to push downside. 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 volatility increased and currently trading around 0.7235 area. As per the current price action, if the price can break below the dynamic level with an impulsive bearish candle, the bears may regain momentum and decline towards 0.7120 to 0.7100 area in the coming days. Alternatively, if the price bounces upside from the dynamic level and breaks over 0.7240 to 0.7250 resistance level, the bulls may recover higher towards 0.7300 to 0.7310 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. Besides, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. It indicates that bears may regain momentum in the days ahead.
NZDUSD Bulls Are Still Optimistic
According to the daily chart, NZDUSD volatility increased, but the overall bias is still bullish. As per the current price action, if the price can break above 0.7240 to 0.7250 area with an impulsive daily bullish candle, the bulls may sustain the bullish pressure towards 0.7300 to 0.7310 area as a first target. The second target will be 0.7380 to 0.7400 key level if the price can break over 0.7300 to 0.7310 area in the coming days.
Image: NZDUSD Daily Chart
Along with this, 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, as long as the price sustains over 0.7100 to 0.7120 support level, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.
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