Technical Talk: NZD/USD 19-11-2018

NZD/USD Technical Analysis: bearish RSI divergence seen in 4-hour chart, 5-day SMA support could be testedOur preference: long positions above 0.6840 with targets at 0.6875 & 0.6885 in extension.Alternative scenario: below 0.6840 look for further downside with 0.6815 & 0.6795 as targets.

The NZD/USD pair is currently trading at 0.6852, down 0.45 percent from Friday’s high of 0.6883, and could witness a deeper pullback to ascending (bullish) 5-day EMA of 0.6822, as the 4-hour chart is showing a bearish divergence of the relative strength index.The pullback could be short-lived as the both 5- and 10-day EMAs are trending north, indicating a bullish setup.
A daily close below the ascending 10-day EMA would invalidate the bullish setup, allowing a short-term consolidation.

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