NZD/USD Price Analysis: Bulls seem tiring near weekly peak above 0.6600
- NZD/USD drops from 0.6648 after rising for two consecutive days.
- Overbought RSI conditions, a three-week-old horizontal resistance probe buyers.
- A falling trend line from July, 200-bar SMA on sellers radars.
NZD/USD eases from intraday high of 0.6648 to 0.6631 amid the early Thursday’s trading. In doing so, the kiwi pair steps back from one-week high amid overbought RSI conditions.
Other than the overbought RSI conditions, a horizontal area since August 07, surrounding 0.6652/56, also challenge the bulls.
As a result, intraday sellers may aim for the monthly support line, previous resistance, around 0.6615 ahead of 200-bar SMA level near 0.6595.
While bullish MACD suggests the pair’s bounce off any small support, the break of 0.6595 can recall 0.6565 and the 0.6500 threshold back to the chart.
On the upside, a clear break above 0.6656 will need validation from 0.6660 to attack the monthly high of 0.6691.
NZD/USD four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
