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NZD/USD Stalls at a New High on the Year

NZD/USD has been very bullish in June, rallying from 0.84 to almost 0.88 this week. The 0.8793 high put in today (6/27) brings the Kiwi to a new high on the year. The daily moving averages are in bullish alignment, but the RSI is still under 70. There might still be room to run before traders consider NZD/USD overbought.

(nzdusd daily chart, 6/27)

If the market starts next week breaking above 0.88, we should have a run at the 0.8842, 2011-high. Otherwise, if price falls below 0.8750, look for some near-term bearish correction toward the 0.8720-0.8730 area.

(nzdusd 1h chart, 6/27)

If the 1H RSI dips to 40, it reflects some near-term bearish momentum, which is within the context of the bull run toward 0.8842. However, if the RSI starts to hold below 60 in the 1H chart, we are likely developing a consolidation outside of the intra-day session, but can cover a week like the one we saw last week coming into this one roughly between 0.8750 and 0.8670.