NZDUSD provides bearish divergence warning

NZDUSD is making a new higher high today at 0.6947 but the RSI does not follow. The RSI is still lower than the previous high and this provides us for the second bearish divergence. Price has broken below the bullish channel and is now back testing the channel from below.

Red rectangles – support levels

Red line – bearish divergence

NZDUSD tested the first red rectangle support area at 0.6875 and bounced off of it. Support was respected. As we explained in our last post, breaking below this support level will be the first sell signal. We expect one to come as the bearish divergence suggests. Until then bears need to be cautious as price continues to make higher highs. We do not prefer to be bullish in the short-term. We prefer to be bearish and look to sell specially if support fails to hold. First target is the 0.68 level.

The material has been provided by InstaForex Company – www.instaforex.com

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MOKAR

Author: MOKAR

Mula berdagang dalam pasaran forex sejak tahun 2003. Manakala pasaran bursa saham tempatan dan global pada tahun 2018. Menjadikan trading online sebagai kerjaya sepenuh masa pada tahun 2019. Kerjaya sebelum ini adalah seorang salesman kereta. Berpengalaman dengan pelbagai teknik dan perguruan tetapi akhirnya sangat serasi dengan teknik FMCBR @ Fibo Musang melalui guruku Cikgu Baha & Cikgu Zul.

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