NZD/USD technical analysis: Off 3-month highs, bullish momentum weakening

NZD/USD has backed off from a three-month high of 0.6736.
A key indicator is showing signs of bullish exhaustion.

Omkar Godbole FXStreet Contributor

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.

4-hour chart

Trend: pullback likely

Pivot points

1. R3 0.679
2. R2 0.6763
3. R1 0.6741
PP 0.6713
1. S1 0.6692
2. S2 0.6664
3. S3 0.6642

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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