NZD/USD Technical Analysis: Bulls Will Likely Defend Key Support of 0.6924

• The NZD/USD hourly chart shows a large bullish price-relative strength index divergence.
• So, a bear flag breakdown could remain elusive, i.e. bulls will likely defend the flag support of 0.6924 and the pair may test falling 50-hour moving average, currently located at 0.6980.
• A daily close below 0.6924would confirm a bear flag breakdown and signal a revival of the sell-off from 0.7395 (April 13 high).

Hourly chart

Spot Rate: 0.6939

Daily High: 0.6939

Daily Low: 0.6929

Trend: Bullish

Resistance

R1: 0.6957 (resistance on hourly chart)

R2: 0.6980 (falling 50-hour MA)

R3: 0.70 (psychological hurdle)

Support

S1: 0.6924 (flag support

S2: 0.6882 (May 30 low)

S3: 0.6851 (May 16 low)