NZD/USD Technical Analysis: Avoids bear flag breakdown on bull divergence

Kiwi risked a bear flag breakdown (seen in the daily chart).
However, the bullish relative strength index (RSI) divergence seen in the hourly chart has likely saved the day for the bulls. The pair has found acceptance above 50-hour moving average and could rise to 0.6960.
A daily close below 0.6925 would confirm a bear flag breakdown and signal a resumption of the sell-off from the April 13 high of 0.7395. In this case, NZD/USD could see a convincing break below the recent low of 0.6851.

Omkar Godbole FXStreet Contributor

Hourly chart

Daily chart

Spot Rate: 0.6940

Daily High: 0.6944

Daily Low: 0.6923

Trend: Bearish below 0.6925

Resistance

R1: 0.6956 (June 18 high resistance on hourly chart)

R2: 0.6977 (100-hour moving average)

R3: 0.70 (psychological resistance)

Support

S1: 0.6920 (previous day's doji candle low)

S2: 0.6882 (May 30 low)

S3: 0.6851 (May 16 low).

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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