NZD/USD Technical Analysis: Corrective rally could gather pace

• The bullish divergence of the 14-hour relative strength index (RSI) indicates the sell-off from the Aug. 28 high of 0.6727 has made a temporary low at 0.6530 and a corrective rally toward the 50-hour moving average (MA) of 0.6583 could unfold over the next few hours.
• Further gains could be short-lived as the 5-day and 10-day MAs are trending south, indicating a bearish setup.

Hourly Chart

Spot Rate: 0.6553

Daily High: 0.6557

Daily Low: 0.6530

Trend: Corrective rally likely

Resistance

R1: 0.6583 (50-hour MA)

R2: 0.6620 (Aug. 24 low)

R3: 0.6642 (10-day MA)

Support

S1: 0.6518 (76.4% Fib R of 2015 low/2017 high)

S2: 0.6448 (February 2016 low)

S3: 0.64 (psychological support)