Excellent bounce to the downside on the Kiwi from EMAs confluence.

An EMA confluence is an area where two different Exponential Moving Averages are sitting on two different timeframes. For instance, on the image below we can see that the 55 Exponential Moving Average is right on the 0.8550 level on the NZD/USD daily chart. We also see that the 200 Exponential Moving Average on the 4 hour chart is on the same level of the 0.8550. This is what we call an EMA confluence and these zones usually become very good support or resistance areas.

In this case, the EMA confluence has acted a very good resistance zone for the NZD/USD and we can clearly see how the price stopped at that level and bounced to the downside from there. Now the price has come back to the 0.8500 level and it is stalling at that zone. We must be on the lookout for this type of confluences, because they could provide us with very good entry opportunities.