NZD/USD Price Forecast: Rises ahead of Fed as USD softens

• NZD/USD up 0.23% to 0.5783 as Greenback weakens.
• Pair remains capped below 0.5800 resistance; break above targets the 50- and 200-day SMA, each at 0.5830 and 0.5858.
• On downside, supports lie at 20-day SMA at 0.5760, 0.5682 and yearly low at 0.5485.

The Kiwi Dollar edges up 0.23% on Tuesday as the Greenback weakens ahead of the Federal Reserve's monetary policy meeting on Wednesday, at which the central bank is expected to cut rates by 25 basis points. The NZD/USD trades at 0.5783 at the time of writing.

NZD/USD Price Forecast: Technical outlook

The NZD/USD technical picture suggests that downtrend might continue, but the Fed's decision could trigger a shift in the trend. Capped on the upside, buyers would face key resistance at 0.5800 before testing the 50-day Simple Moving Average (SMA) at 0.5830, followed by the 200-day SMA at 0.5858.

If those two levels are surpassed, the NZD/USD bias would shift to neutral-upwardly with traders eyeing a challenge to the 100-day SMA at 0.5907.

For a bearish continuation, the NZD/USD first support would be the 20-day SMA at 0.5760, before testing the October 23 low of 0.5724. A decisive break and 0.57 is up next. On further weakness, the next support would be October's low of 0.5682, before plunging towards the yearly low of 0.5485.

NZD/USD Price Chart - Daily