NZD/USD Technical Analysis: Off 4.5-month highs, major bull cross on D1
|- NZD/USD has pulled back 4.5-month highs above 0.66 hit in the overnight trade.
- The daily chart shows a bullish cross of key long-term averages.
NZD/USD is currently sidelined around 0.6585, having hit a high of 0.6603 in the overnight trade. That was the highest level since July 31.
The pullback from 4.5-month highs could be short-lived with the daily chart reporting a bullish crossover of the 50- and 100-day moving averages (MAs). Crossovers are widely following indicators and usually attract technical buyers.
The overbought reading on the 14-day relative strength index would gain credence if and when signs of buyer exhaustion emerge on the daily chart.
Currently, there are no signs of weakening of bullish momentum on the daily chart. In fact, the pair carved out a bullish engulfing candle on Wednesday, signaling the path of least resistance is to the higher side.
Daily chart
Trend: Bullish
Technical levels
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