The NZD/USD pair advanced during recent intraday sessions, breaking above a short-term corrective bearish trend line. This move was bolstered by positive momentum signals from the Relative Strength Index (RSI), which has now reached overbought territory.
While the bullish breakout marks a shift in sentiment, the emergence of early negative overlapping signals suggests the rally may pause temporarily. The pair appears to be working through overbought conditions, and this could limit further gains in the immediate term.
Additionally, the pair is still contending with the lingering pressure of the 50-period Exponential Moving Average (EMA50), which it must overcome to sustain a more decisive upward trend.
Outlook: Short-term bullish momentum, but gains may be capped unless the pair consolidates above the EMA50 and neutralizes overbought pressures.
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