NZD/USD Price Forecast: Rejection at 0.6080 brings 0.6000 back into play

• The US Dollar is trimming losses ahead of the US NFP release.
• The RSI bearish divergence suggests that the Kiwi's rally is losing steam
• NZD/USD: A break below 0.6000-0.5990 would signal a deeper correction.

New Zealand Dollar's upside attempts were capped at 0.6180 on Thursday, and the pair is extending the reversal on Friday, against a somewhat firmer US Dollar, which brings the 0.6000 support area back into focus.

The Greenback is trimming some losses with investors unwinding their USD shorts, after a series of downbeat US releases, awaiting the US Nonfarm Payrolls Report, due later today. The market consensus anticipates a 130,000 net gain in employment in May, with the jobless rate steady at 4.2%.

Technical Analysis: A move below 0.6000 might anticipate a bearish correction

From a technical standpoint, the pair maintains the upside bias observed in the last six weeks intact, but the rejection at 0.6080 suggests that there is important resistance above 0.6050.

The 4-hour chart shows a bearish divergence on RSI studies, which suggests that the upside move is losing strength, and further downside trading below the 0.6000-0.5990 area (trendline support and June 3 lows) today would form an "Evening Star" candle pattern, a negative signal.

The next support levels below here are 0.5925 and 0.5890. On the upside, resistances are at 0.6080 and 0.6145.

NZD/USD 4-Hour Chart