The major RSI divergence on the NZDUSD may set up a near term rally (squeeze).
The Kiwi has shown a lot of divergence on the RSI in the last month as we traded to new 52-week lows. However, today we broke a near term trend line which may kick start a bigger “squeeze” higher as shorts look to liquidate. A move above the .6326 level may allow for a move back above the .6400 level. In addition, we should note that the consolidation in late September was around the 127% extension of the Oct 2018 low to Dec 2018 highs.
Blake Morrow
