NZD/USD technical analysis: Off session highs, but the falling channel breakout is still valid

• NZD/USD has backed off from the session high of 0.6588 reached in early Asia. 
• The bullish structure on the 4-hour chart is still intact with key indicator reporting a bullish divergence.

The NZD/USD is currently trading at 0.6550, having hit a high of 0.6588 earlier today.

Despite the pullback, the outlook as per the 4-hour chart remains bullish, as the falling channel breakout confirmed earlier today is still valid.

Further, the spot is currently trading well above 0.6508 - the low of the bullish engulfing candle created on the 4-hour chart earlier today.

So, a move back to the session high of 0.6558 cannot be ruled out. Supporting the case is the bullish divergence of the 4-hour chart relative strength index.

The bullish case would weaken if the spot finds acceptance below 0.6508.

4-hour chart

Trend: Bullish

Pivot points