NZD/USD Price Forecast: Bounces off 0.5950 near ascending channel’s lower boundary

• NZD/USD may test the key resistance at 0.6038 — a six-month high last reached in November 2024.
• Daily chart analysis suggests a bullish bias, highlighted by the presence of an ascending channel pattern.
• Initial support lies near the lower boundary of this channel, around 0.5940.

The NZD/USD pair recovers its recent losses registered in the previous session, trading around 0.6000 during early European trading hours on Wednesday. Technical analysis on the daily chart indicates a bullish bias, with the formation of an ascending channel pattern. Moreover, the pair remains above the nine-day Exponential Moving Average (EMA), signaling improved short-term price momentum.

Moreover, the 14-day Relative Strength Index (RSI) is climbing back toward the 70 mark, reinforcing the prevailing bullish bias. A decisive move above this level could indicate overbought conditions, potentially increasing the risk of a short-term pullback.

On the upside, the NZD/USD pair could challenge the key resistance at the six-month high of 0.6038, last seen in November 2024. A sustained break above this level would pave the way for a move toward the upper boundary of the ascending channel around 0.6190. A successful breach of this resistance would likely reinforce the bullish outlook and potentially open the path toward the seven-month high near 0.6350, recorded in October 2024.

The initial support is located at the lower boundary of the ascending channel around 0.5940, followed by the nine-day EMA at 0.5907. A break below these levels could weaken the short-term bullish momentum and open the door for further downside toward the 50-day EMA at 0.5766. Additional support is seen at 0.5485—a level not visited since March 2020.

NZD/USD: Daily Chart