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.

analytics5fb7eb900a1f5.jpg

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

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.