NZD/USD Price Analysis: Dips below 0.72, violating an ascending trendline

• NZD/USD drops 0.5% on the US dollar's broad-based recovery rally.
• The pair has dived out of a short-term ascending trendline.

NZD/USD now trades at session lows near 0.7198, representing a nearly 0.5% drop on the day. The pair faced rejection above 0.73 on Wednesday and Thursday, validating the then overbought reading on the 14-day Relative Strength Index (RSI), before turning lower.

The 4-hour chart now shows a downside break of the ascending trendline rising from Dec. 21 and Jan. 4 lows and a head-and-shoulders breakdown on the RSI. 

As such, support at 0.7153 (Jan. 4 low) stands exposed. A move above the 4-hour chart lower high of 0.7181 is needed to revive the bullish bias. 

4-hour chart

Trend: Bearish

Technical levels