EMAs confluence on the NZD/USD

The exponential moving averages or EMAs could act as dynamic support or resistance levels. When two moving averages coincide around the same level on different time frames, this can cause that area to become a very important support or resistance. On the NZD/USD we can see that the 55 EMA on the 4 hour chart is at almost the same level as the 200 EMA on the one hour chart, around the 0.7380.

From the zone of the 0.7380 we can see that the price has bounced to the upside and breaks above the 0.7400 level once again. On the 4 hour chart we can also see that the 200 EMA is around the 0.7445 level and it could act as a good resistance level; therefore, we must be attentive to a possible visit of the price to that zone, because there could be a bounce to the downside from that area.