NZD/USD Price Analysis: Surrenders early gains, forms negative RSI divergence on 1H chart

NZD/USD hourly chart shows a bearish divergence of key indicators.
A violation of support at 0.6715 could invite stronger selling pressure.

Omkar Godbole FXStreet Contributor

NZD/USD is trading near 0.6732 at press time, representing a 0.11% decline on the day. The pair reached a high of 0.6752 during the early Asian session. That level was last seen on Dec. 31, 2019.

The pullback from 0.6752 has confirmed a bearish divergence of the relative strength index on the hourly chart. Similarly, the slow stochastic indicator has also diverged in favor of the bears.

As such, the former resistance-turned-support at 0.6715 (July 31 high) could be put to the test soon. Acceptance under that level would shift the focus to the ascending 5-day simple moving average (SMA), currently at 0.6655.

The overall trend would remain bullish while the pair is held above the daily chart higher low of 0.6489 created on Aug. 20.

Hourly chart

Trend: Pullback likely

Technical levels

NZD/USD

Overview
Today last price	0.6732
Today Daily Change	-0.0010
Today Daily Change %	-0.15
Today daily open	0.6742

Trends
Daily SMA20	0.6594
Daily SMA50	0.6571
Daily SMA100	0.6377
Daily SMA200	0.6378

Levels
Previous Daily High	0.6744
Previous Daily Low	0.6623
Previous Weekly High	0.6744
Previous Weekly Low	0.6514
Previous Monthly High	0.6716
Previous Monthly Low	0.644
Daily Fibonacci 38.2%	0.6698
Daily Fibonacci 61.8%	0.6669
Daily Pivot Point S1	0.6662
Daily Pivot Point S2	0.6582
Daily Pivot Point S3	0.6541
Daily Pivot Point R1	0.6784
Daily Pivot Point R2	0.6825
Daily Pivot Point R3	0.6905

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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