NZD/USD Price Analysis: Technical pullback on the horizon to consolidate gains

The NZD/USD is showing signs of a technical pullback, with the RSI still near 70.
The MACD's histogram prints lower green bars which hints at a weakening momentum.

Patricio Martín FXStreet

The NZD/USD pair is showing signs of a technical pullback, trading at 0.6235, down 0.25% for the day, with technical indicators suggesting a potential consolidation in the near term.

The Relative Strength Index (RSI) is currently at 63, indicating that the pair is trading close to the overbought area and is pointing down. The Moving Average Convergence Divergence (MACD) is printing lower green bars, also signaling that the bullish strength is weakening.

NZD/USD daily chart

Looking at the daily chart, the NZD/USD pair is facing resistance at the 0.6270 level. A break above this level could open the door for further gains. On the downside, the pair is facing support at the 0.6200 level. A break below this level could shift the tide in favor of the bears. Overall, the technical outlook remains positive, but the bullish traction needs to take a breather after pushing the pair to multi-month highs last week which favors a brief period of consolidation before the next upwards leg.

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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