NZD/USD Price Forecast: Could retest 0.5700 support near 50-day EMA

• NZD/USD may aim for initial resistance at the three-month high of 0.5794, reached on January 24.
• The 14-day Relative Strength Index remains above 50, reinforcing the bullish outlook.
• Immediate support is seen at the psychological level of 0.5700, aligning with the 50-day EMA at 0.5698.

The NZD/USD pair loses ground after registering gains in the previous four successive sessions, trading around 0.5720 during European trading hours on Friday. Technical analysis of the daily chart indicates a bullish bias, with the pair trending higher within a newly formed ascending channel pattern.

The 14-day Relative Strength Index (RSI) remains above the 50 mark, reinforcing the bullish outlook. However, NZD/USD is positioned above the nine-day Exponential Moving Average (EMA), signaling short-term momentum is stronger.

A recovery could see the pair targeting initial resistance at the three-month high of 0.5794, reached on January 24, which is aligned with the upper boundary of the ascending channel at 0.5800 level. A break above this crucial resistance zone could reinforce the prevailing bullish bias and support the NZD/USD pair to explore the region around the four-month high at 0.5922 level, recorded in December 2024.

On the downside, immediate support is seen at the psychological level of 0.5700, coinciding with the 50-day EMA at 0.5698 and the nine-day EMA at 0.5694, aligning with the lower boundary of the ascending channel.

A decisive break below the ascending channel could weaken the bullish bias and put downward pressure on the NZD/USD pair to navigate the area around 0.5516--its lowest level since October 2022, recorded on February 3.

NZD/USD: Daily Chart