NZDUSD has become volatile and currently trading inside the ranges of 0.7170 to 0.7250 area. NZDUSD volatility increased below 0.7250 psychological event level. Bulls to regain momentum in the days ahead? What are the charts and technical indicators are saying? Read on to find further insights into today’s NZD/USD Technical Analysis.
March 17, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7182 area and trying to push upside. After breaking below 0.7180 to 0.7170 support level, the bears pushed the price downside quite impulsively, but failed to sustain the bearish pressure below 0.7110 to 0.7100 area and bounced higher. As per the current scenario, the price may face strong support around 0.7170 to 0.7180 area in the coming days.
In addition, the Joe Biden administration’s $1.9 trillion pandemic recuperation package ought to, on balance, demonstrate an aid for Europe, far exceeding the short-term market disobedience that has effectively cornered the European Central Bank into printing much more cash. On the other hand, New Zealand’s economy is performing great as today’s GDP Ratio and Current Account (QoQ) report came better than expected.
NZDUSD Volatility Increased as the Bulls Are Trying to Regain Momentum
NZDUSD is currently residing near 0.7182 area and trying to recover higher. However, the price is still residing below the dynamic level of 20 EMA on the daily chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD volatility increased and currently trading around 0.7182 area. As per the current price action, if the price can have an impulsive bullish candle close above 0.7170 to 0.7180 support area, the bulls may push the price upside towards 0.7230 to 0.7250 area as a first target. The second target will be 0.7300 to 0.7310 area if the price can break over 0.7230 to 0.7250 area in the coming days. Alternatively, if the price breaks below 0.7180 to 0.7170 area with an impulsive bearish candle, the bears may push the price downside towards 0.7110 to 0.7100 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price down. However, the bulls may regain momentum if the price can break above the dynamic level in the days ahead. Moreover, the MACD lines are currently residing near the 0.00 level and may have a bullish crossover.
NZDUSD Bulls Are Still Optimistic
According to the daily chart, NZDUSD volatility increased, but the bulls are still residing on the market. As per the current price action context, if the price can have an impulsive daily bullish candle above 0.7170 to 0.7180 area, the bulls may recover higher towards 0.7300 to 0.7310 area as a first target. The second target will be 0.7450 to 0.7460 key area.
Image: NZDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above the price, along with the Kijun line. So, the bulls need to break over the dynamic level of 20 EMA and the Kijun line to sustain the bullish bias further in the process. Along with this, the Kumo Cloud is currently residing below the price and holding the price as strong support.
To conclude, as long as the price is residing over 0.7100 to 0.7110 psychological support level, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.