In our last analysis on NZDUSD we noted that the downside potential was limited and that a bounce higher was justified. We warned that a reversal was expected soon when price was trading at 0.6710.
Blue line -support
Green line -resistance
NZDUSD is testing the green downward sloping resistance trend line. The RSI already has provided us with a bullish divergence as we noted in previous posts. A daily close above 0.68 would be the first important step to verify a short-term trend reversal. A rejection at current levels could lead price to a new test of the blue support trend line at 0.6680. At current levels we prefer to be neutral and wait for a break out or rejection.
