FX.co ★ Short-term analysis on NZDUSD

NZDUSD is making new higher highs around 0.72. As we expected when price fell towards 0.70, inability to break support would lead to a new higher high towards 0.72. Price is making new highs but the RSI continues to diverge. The RSI price is hitting the RSI resistance trend line connecting previous highs.

Red lines - bearish divergence

NZDUSD has limited upside potential. At current levels I prefer to be neutral if not slightly bearish. The next big move I expect to be lower towards 0.70-0.69. Support is at 0.7130. Breaking below it will be a bearish reversal signal. Until then traders need to be patient. So far no bearish signal. So far only warning signs.