NZD/USD Price Forecast: Remains within a consolidation range of 0.5950/0.5900

• NZD/USD could target the upper side of the rectangle around 0.6010.
• A bullish bias strengthens as the 14-day Relative Strength Index remains above the 50 mark.
• The primary support appears at the nine-day EMA of 0.5916.

NZD/USD is trading around 0.5940 during the European hours on Wednesday. The pair has retraced its recent losses registered in the previous session as a neutral bias persists, suggested by the technical analysis of the daily chart showing the pair is consolidating within a rectangular pattern.

A bullish bias is expected to be reinforced as the 14-day Relative Strength Index (RSI) remains slightly above the 50 mark. Meanwhile, the NZD/USD pair is positioned above the nine-day Exponential Moving Average (EMA), indicating a short-term price momentum is stronger.

The NZD/USD pair may aim for the upper boundary of the rectangle around 0.6010. A further barrier appears at the six-month high of 0.6038, which was last reached in November 2024. A decisive break above this key resistance level could open the doors for a move toward the seven-month high around 0.6350, reached in October 2024.

The NZD/USD pair could test the initial support at the nine-day EMA of 0.5916 on the downside. Further depreciation below this level would weaken the short-term price momentum and potentially drive the pair toward the 50-day EMA at 0.5853. Further decline would encounter the rectangle's lower boundary around 0.5830. A sustained move beneath this crucial support zone could further dampen medium-term price momentum, paving the way for a deeper decline toward 0.5485, a level not seen since March 2020.

NZD/USD: Daily Chart