NZD/USD Technical Technique: Zero.6785
New Zealand Greenback bounce minimize brief at acquainted resistance stage
RSI divergence suggests double prime could also be in within the works
Brief place stays in play absent clear bullish invalidation
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The New Zealand Greenback has returned to problem resistance within the Zero.6851-84 space after a foray to the draw back was minimize brief under the Zero.68 determine. A nominally greater excessive has been set however affirmation of a break on a each day closing foundation is conspicuously absent (at the very least for now) and destructive RSI divergence warns of ebbing upside momentum.
A reversal downward from right here sees preliminary development line assist at Zero.6795, with a break under making a compelling argument for downtrend resumption and opening the door for a check of the Zero.6688-Zero.6726 zone. Alternatively, a each day shut above Zero.6884 eyes a minor chart inflection level barrier at Zero.6965, adopted by a extra substantive threshold at Zero.7060 (June 6 excessive).
The brief NZD/USD commerce triggered at Zero.6785 stays in play. Whereas lasting draw back follow-through is but to materialize, the bearish sample on the coronary heart of the setup has not been overturned. With that in thoughts, it appears prudent to provide the place a little bit of room to develop and set up clearly whether or not a secondary prime will result in reversal or if definitive invalidation will open the door for good points.
NZD/USD TRADING RESOURCES:
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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