NZD/USD Price Analysis: 0.66 is the level to beat for the bulls

• NZD/USD’s daily chart shows a bearish RSI divergence. 
•  A move above 0.66 would invalidate the negative divergence. 

NZD/USD has faced rejections in the 0.66 neighborhood multiple times over the last seven weeks, meaning the rally from the March low of 0.55 has stalled. 

As such, a break above 0.66 is needed to revive the bullish trend. That would also invalidate a bearish divergence (lower high) of the 14-day relative strength index. Chart analysts consider a failed bearish divergence as a powerful bullish signal. 

Hence, a breakout above 0.66 could fuel a quick rally to the Dec. 31, 2019 high of 0.6756. 

Alternatively, a move below 0.6503 (the low of July 14’s long-tailed candle) would validate the bearish divergence of the RSI and may yield a deeper drop to 0.6383 (June 22 low). 

Daily chart

Trend: Bearish

Technical levels