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NZD/USD technical analysis: Bullish outside day makes today’s close pivotal

  • NZD/USD created a bullish outside day on Thursday. 
  • A close above 0.6526 needed to confirm bullish outside day reversal. 

NZD/USD rose 0.39% on Thursday, engulfing the preceding day’s high and low. 

Essentially, the pair created a candle stick pattern called bullish outside day – an early waning of a potential trend change. 

The bearish-to-bullish trend change would be confirmed only if the spot closes today above 0.6526 – the high of the bullish outside day.

That looks likely as the 14-day relative strength index (RSI) has diverged in favor of the bulls and the MACD is teasing a bullish crossover (move above zero). 

The bullish case, however, would weaken if risk aversion again gathers pace, sending NZD/USD below 0.6482

Daily chart

Trend: Bullish

Pivot points

 

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