NZD/USD Holds in Tight Range, Eyes Breakout Toward 0.6010

NZD/USD Price Outlook: Remains in consolidation of 0.5950/0.5900

The NZD/USD pair continues to trade in a narrow consolidation range between 0.5900 and 0.5950 during Wednesday’s European session. At the time of writing, the pair is hovering around 0.5940, holding steady with a neutral to slightly bullish bias as market participants await a potential breakout.

Technically, NZD/USD remains confined within a rectangle pattern on the daily chart, with the upper boundary around 0.6010 and the lower limit near 0.5900. The pair has recovered previous session losses and is showing short-term strength.

The 14-day Relative Strength Index (RSI) is holding above the 50 mark, signaling that the momentum remains in favor of the bulls. Additionally, NZD/USD is trading above the 9-day Exponential Moving Average (EMA), which reinforces a bullish undertone in the short term.

If buyers gain enough momentum, the immediate resistance is seen at 0.6010 — the top of the rectangle pattern. A breakout above this level could open the door for a further rally toward the six-month high of 0.6038, last touched in November 2024. A continued move beyond that may target the October 2024 peak around 0.6350.

On the downside, initial support lies at the 9-day EMA of 0.5916. A sustained move below this level may shift the bias to bearish and expose the lower boundary of the rectangle near 0.5900.

While the pair remains in consolidation, the overall technical structure favors a bullish continuation as long as NZD/USD holds above the 0.5900 support. A break above 0.6010 would confirm bullish intent and signal the next leg higher.