NZD/USD Possible Bounce Level Just Under the Market; RSI Considerations
Chart Prepared by Jamie Saettele, CMT
-Kiwi has resumed lower since resolving its .7140-.7240 range. A parallel is just below the market and could provide support for a bounce. RSI is interesting in that the indicator has slipped below 30 today. Readings above 70 and below 30 have led to immediate reversals over the last year+. In other words, RSI has been ‘range bound’. During trends, turns from OB/OS levels are short lived and/or the indicator will remains ‘extreme’ for extended periods of time. Given the length of time that RSI has traded between 70 and 30, don’t be surprised if the indicator transitions into trending behavior.
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