The NZD/USD is struggling with the 200 day EMA

The New Zealand Dollar versus the US Dollar has had a good bullish trend that has taken it to the 200 day exponential moving average or 200 day EMA, around the 0.7034 level as shown on the daily chart. Usually, the 200 period EMA acts as a good support or resistance zone, especially on the higher timeframes and that is why we can see that the NZD/USD is having difficulty in breaking above that level with sufficient force. The stochastics indicator is showing us that the pair is over-extended to the upside and there is a good probability of seeing a bearish bounce. Therefore, the NZD/USD could bounce to the downside from the 200 day EMA zone. In case of a bearish bounce, its next support level could be the 0.6900 area, followed by the low that it made around the 0.6817 zone. On the other hand, the more time the pair spends around the 200 day EMA, the higher the probabilities of seeing a bullish breakout. If the price breaks to the upside, then the next resistance level could be at the 0.7100 zone.