NZD/USD Price Analysis: Overbought conditions on daily chart point to a minor pullback

NZD/USD extends its corrective declines from two-and-a-half 12 months highs of 0.7172, now retaining the decrease floor beneath 0.7150, as the US dollar degrees an spectacular soar amid tepid market sentiment.

Markets nevertheless continue to be hopeful about a probable US stimulus deal, as they appear to take income off the table, as the last full week of this yr attracts to an end.

From a near-term technical perspective, the 14-day Relative Strength Index (RSI) hovers inside the overbought territory suggesting that the charge should pullback in addition before resuming the uptrend.

The instant guide for the bulls is considered at the 0.7100 spherical figure. The bullish momentum will preserve so lengthy as the fee defends the upward-sloping 21-daily transferring common (DMA) at 0.7045.

To the upside, the bulls want to takeout the 2020 tops of 0.7172 in order to mission the 0.7200 barrier.


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