FX.co ★ NZDUSD remains vulnerable to a pull back

NZDUSD is trading at 0.7190 still inside the upward sloping channel created back in March. As we explained in previous posts, at current levels we prefer to be neutral if not slightly bearish because there are signs of an important top on the way.

Red lines - bearish divergence

The RSI is showing bearish divergence signs. This is a warning and not a reversal signal. We expect to get a reversal signal soon. Breaking below the recent low at 0.71 will be an important bearish signal that will most probably lead to price breaking out and below the bullish channel. We at least expect price to test the lower channel boundary around 0.6990-0.70.