- NZD/USD has recovered to former support-turned-hurdle at 0.6650.
- A rejection at that level could yield a deeper pullback.
NZD/USD is currently trading around 0.6650 – the neckline support of the double top pattern breached on Thursday – having found bids near 0.6625 during the overnight trade.
A failure to keep gains above 0.6650 would reinforce the bearish breakdown and could yield a drop to 0.66. That possibility cannot be ruled out as the long upper wicks attached to the previous two daily candles suggest uptrend exhaustion. In addition, the descending trendline on the hourly chart RSI is indicating a bearish divergence.
However, if that bearish trendline on the RSI is breached, stronger buying pressure would emerge, possibly yielding a break above 0.67.
Hourly chart
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Trend: Bearish below 0.6650
Technical levels
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