NZD/USD Technical Analysis April 9th 2014

The New Zealand dollar is continuing to head higher but some caution should be seen, a head and shoulder pattern no longer seems a possibility but there is some RSI divergence occurring which shows some potential weakness. RSI divergence occurs when price and RSI go in opposite directions from each other, in this case price is around recent highs but RSI is lower. It may be premature to enter short at this point before a significant reversal candle is produced. Also it makes sense that the pair stalled around 0.87 because the 2013 high was at around this level (0.867).


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