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NZD/USD Retreats from a New High on the Year

The NZD/USD ended last week with a new high on the year. We have seen a sharp rally in June from 0.8402 to almost 0.88. This is the level to break now if there is another leg on this current Kiwi-rally. Note that in the daily chart the RSI is still under 70, which means traders are unlikely to see NZD/USD as overbought in the daily chart.

(nzdusd daily chart, 6/30)

The 4H chart shows that NZD/USD is back at June's rising trendline. So far during the 6/30 European session, traders have kept NZD/USD bullish, and another leg up looks imminent toward the 0.88 handle.

(nzdusd 4H chart, 6/30)

If you see price fall below June's TL, and the 4h RSI dip below 40, then we are likely in a significant consolidation. However, as it stands now, price action is still bullish and at a level where traders might continue to buy it up.