FX.co ★ NZDUSD trading just above key support

NZDUSD is still trading inside the bullish channel it is in, since last March. Trend remains bullish as long as price is above 0.7150-0.7120. Breaking below the lower channel boundary will be an important bearish signal.

NZDUSD is vulnerable to a break down. Resistance is at 0.7230. Bulls need to recapture the 0.7230 level and continue higher. With the RSI already providing bearish divergence signs, I believe bulls need to be very cautious and protect any gains. Aggressive traders should be ready to initiate short positions once the major support area of 0.7150-0.7120 fails to hold. Our first downside target is at 0.69.