NZD/USD Price Forecast: Rises to near 0.5950 after breaking above nine-day EMA

• NZD/USD could target the rectangle’s upper boundary around 0.6020, followed by the six-month high of 0.6038.

• The 14-day RSI has climbed above the 50 level, hinting at a developing bullish bias.

• A break below the nine-day EMA of 0.5929 would weaken the short-term price momentum.

The NZD/USD pair holds gains after registering approximately 1.50% gains in the previous session, trading around 0.5940 during the European hours on Wednesday. The technical analysis of the daily chart indicates a neutral stance, as the pair continues to consolidate within a rectangular range.

However, the 14-day Relative Strength Index (RSI) has climbed above the 50 level, hinting at a developing bullish bias. Moreover, the NZD/USD pair remains above the nine-day Exponential Moving Average (EMA), pointing to strengthening short-term upward momentum.

The NZD/USD pair could target the rectangle’s upper boundary around 0.6020, followed by the six-month high of 0.6038, last seen in November 2024. A break above this crucial resistance zone could open the doors for the pair to explore the region around the seven-month high near 0.6350, recorded in October 2024.

On the downside, the NZD/USD pair may test its initial support at the nine-day EMA of 0.5929. A break below this level would weaken the short-term price momentum and put downward pressure on the pair to retest the initial support at the lower boundary of the rectangle around 0.5850, aligned with the 50-day EMA at 0.5843. A sustained move below this key support zone could further deteriorate medium-term momentum, potentially exposing the pair to a deeper decline toward 0.5485 — a level last seen in March 2020.

NZD/USD: Daily Chart