- The NZD / USD hourly chart shows a bearish divergence in key indicators.
- A breach of support at 0.6715 could invite more selling pressure.
The NZD / USD is trading near 0.6732 at time of release, which is down 0.11% on the day. The pair hit a high of 0.6752 early in the Asian session. This level was last seen in December. 31, 2019.
The pullback to 0.6752 confirmed a bearish divergence in the relative strength index on the hourly chart. Likewise, the Slow Stochastic Indicator also diverged in favor of the bears.
As such, the old resistance turned support at 0.6715 (July 31 high) may soon be put to the test. Acceptance below this level would shift attention to the ascending 5-day Simple Moving Average (SMA), currently at 0.6655.
The overall trend would remain bullish as the pair holds above the daily chart low of 0.6489 created on August. 20.
Trend: Probable withdrawal