FX.co ★ NZDUSD remains inside bullish channel but with glaring bearish RSI divergence

NZDUSD has pulled back recently from 0.73 to 0.7090. Despite this pull back, the Daily chart shows us that it remains inside the medium-term bullish channel continuing the upward move that started almost a year ago.

Red lines - Bearish RSI divergence

NZDUSD remains in a bullish trend as we talked above. Price is still inside the bullish blue channel. However a break below 0.71 combined with the glaring bearish RSI divergence would turn me bearish. At current levels I believe it is too risky to add to long positions or open new long positions. Upside potential is limited. I prefer to be neutral and wait for a sign of weakness to turn bearish. So far price continues making higher highs and higher lows. So far we only have indications of weakening trend but no reversal yet.