NZD/USD hits stops and then fades back to unchanged
A fourth day of gains pushed the New Zealand dollar through the June highs to the best levels since February. Stops were tripped on the run above the June high of 0.7320 in a quick rally to 0.7344 but after a sharp run-up, the pair quickly faded.
After hitting the high the pair has retreated more than 50 pips to unchanged on the day at 0.7288.
What's been clear in NZD trading for the past week (aside from the gains) is the inability of the pair to close at or near the highs. That points to waning enthusiasm in the trend.
That's not a big surprise given the 7.5% gain since mid-May but combined with today's doji and resistance at the February highs, it's a sign that NZD bulls should consider some time on the sidelines.
