NZD/USD Price Forecast: Holds position above 0.5700 near 50-day EMA support

• NZD/USD trades within the consolidation phase, with the pair moving within a rectangular pattern.
• A bullish shift would be indicated if the 9-day EMA successfully breaks above the 50-day EMA.
• The immediate support appears at the 50-day EMA of 0.5697 level, aligned with the nine-day EMA at 0.5696 level.

The NZD/USD pair holds gains after recovering daily losses, trading around 0.5710 during European trading hours on Tuesday. Technical analysis of the daily chart indicates a consolidation phase, with the pair moving within a rectangular pattern.

Additionally, nine-day and 50-day Exponential Moving Average (EMA) align together, it generally signals a period of equilibrium in the market where short-term and medium-term trends are converging. The 9-day EMA was below and is now attempting to break above the 50-day EMA, it might signal a bullish shift if it eventually crosses above.

However, the 14-day Relative Strength Index (RSI) remains above the 50 mark, suggesting that bullish bias is in play.

On the upside, the NZD/USD pair could test the upper trendline of the rectangle at 0.5760 level, followed by the three-month high of 0.5794, reached on January 24. A break above this crucial resistance zone could cause the emergence of the 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.

The immediate support is seen at the 50-day EMA of 0.5697 level, aligned with the nine-day EMA at 0.5696 level. A successful break below these levels could weaken the short-term price momentum and put downward pressure on the NZD/USD pair to test the psychological level of 0.5600, followed by the lower trendline of the rectangle at 0.5590 level. Further support appears around 0.5516--its lowest level since October 2022, recorded on February 3.

NZD/USD: Daily Chart