- The NZD / USD reaches the highest level since December 2018.
- The RSI on the daily chart indicates overbought conditions, but the price chart shows no signs of bullish fatigue.
The NZD / USD pair continues to rally, defying bullish fatigue signaled by an overbought reading or above 70 points on the 14-day RSI.
The pair has hit a high of 0.6963 during the Asian session, a level not seen since December 2018.
An overbought reading on the RSI indicates that the bullish move is overbought and a minor pullback or consolidation could be seen, it does not imply a bearish turn. Furthermore, the indicator needs validation in the form of uptrend depletion patterns on the price chart, which, until now, have remained elusive.
As such, the path of least resistance is to the upside, even more so as the 14-month RSI has crossed into bullish territory above 50 points. Significant resistance is seen at 0.7176 (200 month SMA). Meanwhile, support is at 0.6789 (September 2 low).
NZD / USD daily chart
NZD / USD technical levels
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