- NZD / USD is back from multi-year highs of 0.7172.
- Overbought conditions on the daily RSI could drive a pullback.
- The focus is on the news about the US stimulus and money flows towards the US dollar.
The NZD / USD pair extends its corrective decline from two-and-a-half-year highs of 0.7172, hovering around the 0.7130 level at the start of the European session on Friday, as the US dollar makes an impressive rebound amid declining sentiment for the market.
Markets are still hopeful about a possible US stimulus deal as they look to take profits as the last full week of the year draws to a close.
From a short-term technical perspective, the 14-day RSI remains within the overbought territory, suggesting that the price could pull back further before resuming the uptrend.
Immediate support for the bulls is at the round 0.7100 level. The bullish momentum will continue as long as the price defends the upward sloping 21-day moving average at 0.7045.
Looking up, the bulls must break above the 2020 high of 0.7172 to challenge the 0.7200 barrier.
NZD / USD daily chart
NZD / USD technical levels
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