NZD/USD Price Analysis: RSI divergence keeps sellers hopeful inside nearby rising channel
- NZD/USD refreshes intraday high following upbeat comments from New Zealand Finance Minister Robertson.
- RSI divergence on the hourly chart can drag the quote to 0.6420/25 support confluence.
- February month high lures the buyers during further upside.
NZD/USD takes the bids near 0.6473, up 0.14% on a day, during the early Friday’s trading. The kiwi pair recently benefited from New Zealand Finance Minister Grant Robertson suggesting further helps for domestic businesses.
Read: NZ FinMin Robertson: Will further extend coronavirus support schemes for businesses
Even so, bearish RSI divergence, portrayed by a higher high in prices and lower high in RSI, seems to cap the quote’s short-term upside within the two-day-old rising trend line.
As a result, sellers may target a confluence of the said channel’s support line and an ascending trend line from May 29, around 0.6420/25, during the further downside.
However, a 100-HMA level of 0.6357 might restrict the NZD/USD price’s additional weakness.
Alternatively, the channel’s upper line and February month high, respectively around 0.6495 and 0.6505, could keep the short-term bulls chained.
NZD/USD hourly chart
Trend: Pullback expected
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