NZD/USD – Watch for Resistance Near .6970
Chart Prepared by Jamie Saettele, CMT
-Recall the RSI comments from the last note. “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.” NZD/USD RSI is below 25. The historical record on performance following a 25 reading is mixed but just know that a low reading in and of itself doesn’t mean that a market has to make a low (as per trending behavior). Pay attention to the 2015-2016 trendline.
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