NZD/USD Price Forecast: Approaches the 0.5900 resistance level near nine-day EMA

• NZD/USD faces immediate resistance near the nine-day EMA at 0.5912.

• The 14-day RSI sits at the 50 level, indicating a neutral bias.

• The pair may retest initial support at the rectangle’s lower boundary around 0.5850.

The NZD/USD pair retraces its recent losses registered in the previous session, trading around 0.5890 during the European hours on Tuesday. The technical analysis of the daily chart suggests a neutral outlook, with the pair consolidating within a rectangular range.

Additionally, the 14-day Relative Strength Index (RSI) is positioned on the 50 mark, suggesting a neutral bias. A clearer directional trend may emerge with further price movement. However, the NZD/USD pair remains below the nine-day Exponential Moving Average (EMA), signaling weak short-term momentum.

The immediate barrier appears at the nine-day EMA of 0.5912. A break above this level could reinforce the short-term price momentum and support the NZD/USD pair to approach the rectangle’s upper boundary at 0.6020, followed by the six-month high of 0.6038, last seen in November 2024. Further resistance seems at the seven-month high near 0.6350, recorded in October 2024.

On the downside, the NZD/USD pair may retest the initial support at the lower boundary of the rectangle around 0.5850, followed by the 50-day EMA at 0.5836. A break below this crucial support zone could weaken the medium-term price momentum and put downward pressure on the NZD/USD pair to test support at 0.5485, a level not visited since March 2020.

NZD/USD: Daily Chart