• NZD/USD may approach the initial barrier at the 50-day EMA of 0.5891.
• The market sentiment remains bearish as the 14-day RSI is positioned below the 50 mark.
• The initial support lies at the nine-day EMA of 0.5824.

NZD/USD extends its gains for the third successive session, trading around 0.5840 during the European hours on Thursday. The daily chart’s technical analysis shows that short-term price momentum has strengthened as the pair trades above the nine-day Exponential Moving Average (EMA).

However, the 14-day Relative Strength Index (RSI) is still positioned below the 50 mark, suggesting a bearish bias is active. Further advances toward the 50 mark may improve the market bias.

On the upside, the NZD/USD pair may target the 50-day EMA at 0.5891. A break above this level would improve the medium-term price momentum and support the pair to test the three-month high of 0.6008, reached on September 17, followed by 0.6121, the highest since October 2024.

The NZD/USD pair could find its initial support at the nine-day EMA of 0.5824. A break below this level would weaken the short-term price momentum and prompt the pair to test the downward trendline around 0.5730. Further declines below the trendline would open the doors for the pair to navigate the area around 0.5485, the lowest level since March 2020, which was recorded on April 9, 2025.

NZD/USD: Daily Chart