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.
