Buying momentum might have hit its ceiling, correction incoming

• NZD/USD extended its winning streak in Thursday’s session, rising to 0.6255.
• The RSI is near overbought territory and suggests selling pressure could emerge.
• Despite a looming correction, the overall outlook is bullish.

The NZD/USD pair extended its winning streak to three consecutive sessions on Thursday, rising to a high of 0.6300 and then stabilizing at 0.6250. As buyers got quickie rejected the buying steam seems to be running out of steam.

The technical indicators present a mixed picture. The Relative Strength Index (RSI) is rising and currently stands at 68 indicating that the pair is near overbought territory and selling pressure could emerge. In addition, the Moving Average Convergence Divergence (MACD) is almost flat, suggesting a weakening buying traction.

NZD/USD daily chart

The key resistance level for the NZD/USD pair lies 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 at the 0.6230- 0.6200 area.