Technical pullback allows consolidation of gains

• The NZD/USD pair is showing signs of consolidation after hitting yearly highs last week.
• The RSI and MAC indicate a flattening uptrend.

NZD/USD is consolidating near the 0.6200 support level as bulls take a lull after the August rally.

The Relative Strength Index (RSI), at 57, remains in positive but steady territory. However, the falling green bars in the Moving Average Convergence Divergence (MACD) suggest that the bullish momentum remains steady but declining. If the MACD turns into bearish momentum, it could confirm a reversal in sentiment.

NZD/USD Daily Chart

Looking at the daily chart, the NZD/USD pair is facing resistance at the 0.6230 level. A break above this level could open the door for further gains. On the downside, the pair faces support at the 0.6170 level. A break below this level could turn the tide in favor of the bears. Overall, the outlook is positive, but a healthy correction was needed after rising to January highs last week when the upward move became overextended. Now the pair is ready to strengthen.