Violet lines- Fibonacci retracements
Red lines- wedge pattern
Black line- bullish RSI divergence
NZDUSD remains in a short-term bearish trend making lower lows and lower highs. Price has formed a downward sloping wedge pattern and price so far continues to respect the wedge boundaries. Price has reached important Fibonacci support and at the same time the RSI provides important warning. The RSI is not making lower lows. The RSI is providing bullish divergence warnings implying that the down trend is weakening. The 38% Fibonacci retracement has been reached. Price has potential to at least test the upper wedge boundary at 0.62. Price is currently at 0.6161. The RSI suggests that there is potential for a bigger bounce than just 0.62. Breaking above the 0.62 resistance will provide us an added bullish signal.
