The buying momentum could have peaked and the correction would have come

• NZD/USD extended its winning streak in Thursday’s session, climbing to 0.6255.
• The RSI is close to overbought and suggests that selling pressure may be coming.
• Despite a looming correction, the overall outlook is bullish.

The NZD/USD pair extended its winning streak to three consecutive sessions on Thursday, climbing to a high of 0.6300 and then stabilizing at 0.6250. As buyers were quickly turned away, the buying steam appears to be running out.

Technical indicators present a mixed picture. The Relative Strength Index (RSI) is rising and is currently at 68, indicating that the pair is close to being overbought and selling pressure could emerge. Furthermore, the Moving Average Convergence Divergence (MACD) is almost constant, suggesting a weakening of buying traction.

NZD/USD Daily Chart

The key resistance level for the NZD/USD pair is at 0.6250. A consolidation above this level could lead to a move towards 0.6270 and potentially back towards 0.6300. On the downside, immediate support is seen in the 0.6230-0.6200 area.