NZDUSD has become volatile, but the bulls are still holding the bullish bias above 0.7100 to 0.7120 area. NZDUSD volatility increased over 0.7100 psychological event level. What is next? Bulls to sustain the bullish trend further 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.
February 17, 2021, | AtoZ Markets – NZDUSD is currently trading around 0.7192 area and trying to push downside. After bouncing from 0.7180 to 0.7200 support level, the bulls pushed the price upside, but failed to break over the rising wedge’s resistance on the intraday chart. As per the current price action, the price may face strong support around 0.7180 to 0.7200 area in the coming days.
Moreover, the U.S. Depository Department said that Janet Yellen, U.S. Treasury Secretary, focused on the significance of participation with the European Union in a call with the European Commission’s vice president for the economy Valdis Dombrovskis yesterday. On the other hand, New Zealand’s GDP rose more-than-anticipated in the last quarter; official data appeared on Wednesday. In a narration, Statistics New Zealand said that New Zealand’s gross domestic product rose to an occasionally changed 0.7%, from 0.9% in the first quarter.
NZDUSD Volatility Increased as Both Economies Are Struggling Because of the Pandemic
NZDUSD is currently residing near 0.7192 area and trying to decline. However, the price is still residing over the Kumo Cloud on the daily chart.
Image: NZDUSD 4 Hour Chart
According to the 4-hour chart, NZDUSD volatility increased and currently trading around 0.7192 area. As per the current price action, if the price bounces upside from 0.7180 to 0.7200 area with an impulsive bullish candle, the bulls may recover higher towards 0.7260 to 0.7270 area in the coming days. Alternatively, if the price breaks below 0.7200 to 0.7180 support level with a 4-hour bearish candle, the bears may sustain the bearish pressure towards 0.7120 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 downside. Also, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.
NZDUSD Bulls May Regain Momentum
According to the daily chart, NZDUSD volatility increased, but the bulls are still optimistic. As per the current price action context, if the price bounces higher from 0.7180 to 0.7200 support area with an impulsive daily bullish candle close, the bulls may continue the bullish trend towards 0.7300 to 0.7310 area as a first target. The second target will be 0.7350 to 0.7360 key area if the price can break 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 near the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support if the price can have a daily close above it. 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 bulls holding the price over the Kumo Cloud on the daily chart, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.