NZD/USD Price Forecast: Finds psychological support at 0.5950 near nine-day EMA

• NZD/USD is poised to test the key resistance level at 0.6038, its highest point in six months.
• The 14-day RSI remains above the 50 threshold, indicating a sustained bullish bias.
• The initial support is seen at the psychological level of 0.5950, closely aligned with the nine-day EMA at 0.5945.

The NZD/USD pair remains subdued after registering gains in the previous session, trading around 0.5970 during European hours on Tuesday.

Technical indicators on the daily chart suggest a bullish bias, with the pair remaining above the nine-day Exponential Moving Average (EMA), signaling improved short-term price momentum.

Moreover, the 14-day Relative Strength Index (RSI) is positioned above the 50 mark, suggesting the prevailing bullish bias.

If 14-day RSI rises toward the 70 mark, it could reinforce the market sentiment to test the six-month high of 0.6038, last seen in November 2024. A sustained break above this level could open the doors to explore the area around its seven-month high near 0.6350, recorded in October 2024.

On the downside, the initial support is located at the psychological level of 0.5950, aligned with the nine-day EMA at 0.5945. A break below this crucial support zone could weaken the short-term bullish momentum and open the door for further downside toward the 50-day EMA at 0.5796.

Further depreciation would deepen the bearish bias and put the downward pressure on the NZD/USD pair to test support at 0.5485--a level not visited since March 2020.

NZD/USD: Daily Chart