- NZD / USD falls 0.6648 after rising for two consecutive days.
- Overbought RSI conditions, a three week old bullish horizontal resistance probe.
- A downward trend line from July, SMA 200 bars on sellers radars.
NZD / USD crosses from 0.6648 intraday high to 0.6631 amid Thursday morning trading. In doing so, the Kiwifruit pair retreats from a one-week high under overbought RSI conditions.
In addition to the overbought conditions of the RSI, a horizontal zone since August 07, around 0.6652 / 56, also challenges the bulls.
As a result, intraday sellers can aim for the monthly support line, previous resistance, around 0.6615 ahead of the 200 bar SMA level near 0.6595.
While the bullish MACD suggests that the pair is bouncing off any small support, the breakout of 0.6595 may call back 0.6565 and the 0.6500 threshold on the chart.
On the upside, a clear break above 0.6656 will require a validation of 0.6660 to attack the monthly high of 0.6691.
NZD / USD Four Hour Chart
Trend: expected decline