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  • NZD/USD faces rejection at six-month high of 0.6707. 
  • Daily RSI shows bearish divergence and scope for a pullback.

NZD/USD pair is currently trading in the red near 0.6688, having hit a six-month high of 0.6707 early Friday. 

The pair has faced rejection above 0.67 for the second time this week. The bulls hit a wall just above 0.67 on Monday. 

That, alongside 14-day relative strength index’s (RSI) bearish divergence, suggests ebbing of bullish momentum. A bearish divergence occurs when the RSI prints lower highs as opposed to higher highs on price and often precedes price pullbacks.

As such, a pullback could be seen during the day ahead. Support is seen at 0.6655 (10-day SMA) and 0.6614 (July 24 low). 

On the flip side, acceptance above 0.67 could yield additional gains toward 0.6733 (December 2019 high). 

4-hour chart

Trend: Pullback likely

Technical levels