NZD/USD Price Forecast: Retains bullish bias above 0.6000 above the 100-day EMA

• NZD/USD gains momentum to around 0.6010 in Thursday’s early European session, up 0.20% on the day. 

• The pair keeps the bullish vibe above the 100-day EMA, but consolidation cannot be ruled out in the near term.

• The immediate resistance level is seen at 0.6072; the initial support level is located at 0.5976.

The NZD/USD pair attracts some buyers near 0.6010 during the early European session on Thursday, bolstered by a softer US Dollar (USD). The US weekly Initial Jobless Claims will be in the spotlight later on Thursday. Also, the Federal Reserve (Fed) officials are scheduled to speak, including Alberto Musalem, Christopher Waller and Mary Daly.

The RBNZ left the Official Cash Rate (OCR) unchanged at 3.25% at its July meeting on Wednesday. Policymakers said the decision to hold the interest rate would allow the central bank to assess whether weakness in the domestic economy is persisting and how inflation and inflation expectations evolve before their next meeting in August. 

Technically, NZD/USD keeps the bullish vibe on the daily chart, with the price holding above the key 100-day Exponential Moving Average (EMA). However, further consolidation cannot be ruled out as the 14-day Relative Strength Index (RSI) hovers around the midline. This suggests neutral momentum in the near term. 

The first upside target to watch for the pair is seen at 0.6072, the high of June 12. Extended gains could see a rally to the 0.6100-0.6110 zone, representing the psychological mark and the upper boundary of the Bollinger Band. Further north, the next hurdle is located at 0.6173, the high of October 7, 2024. 

On the other hand, the initial support level for NZD/USD emerges at 0.5976, the low of July 9. A breach of this level could expose 0.5950, the lower limit of the Bollinger Band. The crucial contention level to watch is 0.5925, the 100-day EMA.

NZD/USD Daily Chart