NZD/USD Price Analysis: Hits 4.5-month high despite overbought reading on RSI

• NZD/USD extends a five-day winning run and hits a multi-month high. 
• Recent rally from lows near 0.59 looks overstretched as per the daily RSI.

NZD/USD is reporting gains for the sixth straight day. 

At press time, the pair is trading at 0.6523, having hit a high of 0.6537 in early Asia. That level was last seen on Jan. 29. 

The 14-day relative strength index is reporting overbought conditions with an above-70 print for the first time since December 2019. An overbought does not imply bearish reversal and merely indicates the rally is overstretched and bulls could take a breather. 

Further, the price chart is currently not showing any signs of buyer exhaustion. The indicator would gain credence if and when NZD/USD carves out candlestick patterns like bearish engulfing, Doji, evening start, which indicate buyer fatigue. 

All in all, the bias remains bullish and pullbacks, if any, could take the support of the ascending 5-day simple moving average at 0.6456. 

Daily chart

Trend: Bullish

Technical levels