NZD/USD Technical Analysis: Avoids bear flag breakdown on bull divergence

• Kiwi risked a bear flag breakdown (seen in the daily chart).
• However, the bullish relative strength index (RSI) divergence seen in the hourly chart has likely saved the day for the bulls. The pair has found acceptance above 50-hour moving average and could rise to 0.6960.  
• A daily close below 0.6925 would confirm a bear flag breakdown and signal a resumption of the sell-off from the April 13 high of 0.7395. In this case, NZD/USD could see a convincing break below the recent low of 0.6851.  

Hourly chart

Daily chart

Spot Rate: 0.6940

Daily High: 0.6944

Daily Low: 0.6923

Trend: Bearish below 0.6925

Resistance

R1: 0.6956 (June 18 high resistance on hourly chart)

R2: 0.6977 (100-hour moving average)

R3: 0.70 (psychological resistance)

Support

S1: 0.6920 (previous day’s doji candle low)

S2: 0.6882 (May 30 low)

S3: 0.6851 (May 16 low).