NZD/USD Price Forecast: Tests confluence around 0.6000 barrier

• NZD/USD may target its initial barrier at 0.6000, followed by the ascending channel's upper boundary around 0.6010.
• The market sentiment remains bullish as the 14-day RSI stays firmly above the 50 mark.
• The primary support lies at the nine-day EMA of 0.5951.

NZD/USD depreciates after two days of gains, trading around 0.5970 during the European hours on Wednesday. The technical analysis of the daily chart indicates a strengthening bullish bias, as the pair moves upwards within the ascending channel pattern.

The short-term price momentum is stronger as the NZD/USD pair is positioned above the nine-day Exponential Moving Average (EMA). Additionally, the bullish bias strengthens as the 14-day Relative Strength Index (RSI) remains above the 50 mark.

On the upside, the NZD/USD pair may find its primary barrier at the psychological level of 0.6000, followed by the upper boundary of the ascending channel around 0.6010. A break above the channel would strengthen the bullish bias and support the pair to explore the region around the 11-month high of 0.6121, which was recorded on July 1.

The NZD/USD pair could find its initial support at the nine-day EMA of 0.5951, followed by the 50-day EMA at 0.5932. A break below the latter would dampen the bullish bias and put downward pressure on the pair to test the ascending channel's lower boundary around 0.5870.

NZD/USD: Daily Chart