NZD/USD: Resistance at the 55 day EMA

The 55 day exponential moving average or EMA could act as a good support or resistance zone on some occasions. On the daily chart of the New Zealand Dollar versus the US Dollar we can see that the pair has kept a good bearish trend and it has stayed within a channel. But after the price broke below the 55 day EMA (purple line) and made a low at the 0.6428 level, the pair rallies again to the 55 day EMA where it stalls at the moment. That level of the 0.6582, where the 55 day EMA is located could have the price bounce to the downside. However, the pair may also break above the 55 day EMA and if that happens, then the 200 day EMA (blue line) at the 0.6830 level could act as its next resistance.