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  • NZD/USD violates five-month-long descending trendline resistance. 
  • The technical breakout is yet to draw stronger bids for the Kiwi. 

NZD/USD is struggling to capitalize on the bullish breakout on the daily chart. 

The pair rose for the third straight day on Wednesday and closed above the resistance of the trendline connecting Jan. 2 and March 9 highs, marking an upside break of the 2020 bearish trendline. 

So far, however, that has failed to invite stronger buying pressure. The pair is currently trading in the red near the trendline support (former hurdle) at 0.6132, having put in a high of 0.6158 during Wednesday’s US trading hours. 

A deeper pullback, possibly to 0.61, could be seen as the hourly chart is reporting a bearish divergence of the relative strength index. That said, the bullish daily chart outlook would be invalidated only if the spot finds acceptance under Wednesday’s low of 0.6063. 

Daily chart

Trend: Bullish

Technical levels