NZDUSD remains in a bearish trend making lower lows and lower highs. Resistance at 0.6820 remains key for the short-term trend. The RSI has started providing us with bullish divergence signals. These signals are important warnings that imply downtrend will soon end.
Red lines- Bullish divergence
NZDUSD is challenging the resistance trend line. As long as price is below 0.6820, NZDUSD will be vulnerable to more downside. The bullish RSI divergence signals provide a good chances of a reversal, but no confirmation has been given yet. A rejection at 0.6820-0.68 could lead to new lower lows towards 0.67. Currently bears remain in control of the trend, but there are increased chances we might see an important reversal.
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