Although the longer-term trend in NZDUSD remains bullish as price remains inside the upward sloping channel, the recent price action is neutral as price is trading sideways since January 26th. The trading range NZDUSD is currently in has resistance at 0.7235 and support at 0.7140.
Blue upward sloping lines - bullish channel
Blue downward sloping line - RSI bearish divergence
Red lines -short-term trading range
NZDUSD traders need to be cautious when this trading range is broken. We keep a close eye on the two important levels of the short-term trading range and always keep a close eye on the 0.71 channel support. The RSI has warned bulls that the bullish trend is weakening. Will this lead to a deeper correction? Most probably if price fails to hold 0.71-0.7140. I turn full bearish if price breaks below this support level and breaks out of the bullish channel.
