NZD/USD Technical Analysis: Bearish RSI div on 1H chart, bulls need close above 50-day EMA

• The rejection at the rising trendline hurdle and the bearish divergence of the relative strength index (RSI) on the hourly chart indicates scope for a pullback to 5-day EMA, currently located at 0.6567.
• The 5-day and 10-day EMAs are trending north, indicating a bullish setup. Hence, pullbacks, if any, could be short-lived. A close above 50-day EMA, which proved a tough nut to crack on Friday, would bolster the already bullish technical setup on the daily chart. At press time, the 50-day EMA is located at 0.6602.

Hourly Chart

Spot Rate: 0.6585

Daily High: 0.6611

Daily Low: 0.6581

Trend: Intraday bearish

Resistance

R1: 0.6602 (50-day EMA)

R2: 0.6634 (76.4% Fib R of 0.67/0.6424)

R3: 0.6702 (100-day EMA)

Support

S1: 0.6568 (5-day EMA)

S2: 0.6553 (10-day EMA)

S3: 0.6523 (previous day's low)