- NZD/USD has backed off from a three-month high of 0.6736.
- A key indicator is showing signs of bullish exhaustion.
NZD/USD is currently trading at 0.6727, having hit a high of 0.6736 earlier today. That has been the highest level since April 17.
The moving average convergence divergence (MACD) on the 4-hour chart hasn't confirmed the three-month high, a sign the bullish momentum may be running out of steam.
As a result, a minor pullback to 0.67 cannot be ruled out. It is worth noting that the 200-day moving average is currently located at 0.6709 with the 14-day relative strength index (RSI) reporting bullish conditions with an-above 50 reading. The MACD on the daily chart is also biased bullish.
Hence, a dip to 0.6709-0.67 could be short-lived. Overall, the path of least resistance will remain to the higher side as long as the pair is held above Monday's low of 0.6684.
Trend: pullback likely
- R3 0.679
- R2 0.6763
- R1 0.6741
- PP 0.6713
- S1 0.6692
- S2 0.6664
- S3 0.6642
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