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NZD/USD overextended but making higher highs

NZD/USD has been building up a bearish case of late, and traders may be looking to take some profit off the table.

On a 4-hour chart, the 50-period is well distanced above the 200-period SMA and the Relative Strength Index has been, on average, above the 50% mark over the last three weeks.

The recent attack on highs, coupled with the acceleration of the rally has caused this indicator to enter the overbought zone above 75%. This is a less frequent event in this time frame and is often associated with 5th waves. NZD/USD spot would have to gravitate towards the 50 SMA at a minimum to alleviate immediate upside pressures.

Sell USD, theme of the currency markets – Investec

Research Team at Investec, notes that the ongoing theme in currency markets continues to be investors selling US Dollars (USD) as they become more sceptical of Fed rate action this year.
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EUR/USD SMA cross argues move higher

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