NZD/USD Retreats from Eight-Week Highs Amid US Dollar Weakness
The New Zealand Dollar (NZD) has pulled back from eight-week highs at 0.5885 but remains above previous highs, at 0.5860. The Kiwi's nearly 1.5% weekly rally is buoyed by the US Dollar's weakness following the Federal Reserve's monetary policy meeting.
The pair is in a corrective pullback after reaching overbought levels on intraday Relative Strength Index (RSI). Technical analysis suggests that upside pressure is still intact, with the Moving Average Convergence Divergence (MACD) remaining above its signal line.
A sharper reversal below 0.5860 could find support between the ascending trendline from June 25 lows and July 23, 27, and 29 lows. Above Thursday's highs at 0.5885, bulls might face resistance at the 78.6% Fibonacci retracement of the June sell-off.