Moving average confluence on the NZD/USD

On various occasions we have seen how the 200 period exponential moving average acts as a very good support or resistance zone and at times the 55 period exponential moving average does the same thing. When these two moving averages coincide around the same zone on different time frames, the area becomes a very important support or resistance.

That is exactly what we are seeing on the NZD/USD on the daily and 4 hour charts. On the daily chart we can see that the price has gotten to the 55 period exponential moving average zone around the 0.7550 and it is currently trying to bounce to the upside from there.

On the 4 hour chart we can see that the zone of the 0.7550 level coincides very closely with the 200 period exponential moving average (blue line) and that is why that area has become a very strong support for the pair.

From this point on, the pair may try to go back up, but we must also be aware that the 0.7600 level could become a temporary resistance for the price.