NZD/USD Price Analysis: Bulls again struggle to keep gains above 0.67
- NZD/USD faces rejection at six-month high of 0.6707.
- Daily RSI shows bearish divergence and scope for a pullback.
NZD/USD pair is currently trading in the red near 0.6688, having hit a six-month high of 0.6707 early Friday.
The pair has faced rejection above 0.67 for the second time this week. The bulls hit a wall just above 0.67 on Monday.
That, alongside 14-day relative strength index's (RSI) bearish divergence, suggests ebbing of bullish momentum. A bearish divergence occurs when the RSI prints lower highs as opposed to higher highs on price and often precedes price pullbacks.
As such, a pullback could be seen during the day ahead. Support is seen at 0.6655 (10-day SMA) and 0.6614 (July 24 low).
On the flip side, acceptance above 0.67 could yield additional gains toward 0.6733 (December 2019 high).
4-hour chart
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Trend: Pullback likely
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
