NZD/USD Price Forecast: Advances to near 0.6200; next barrier at seven-month highs

• The daily chart analysis of the NZD/USD pair suggests that selling pressure is weakening and signals a potential bullish reversal.
• The pair may explore the area around its seven-month high of 0.6247.
• The nine-day EMA at 0.6181 level appears as an immediate support, followed by the upper boundary of the descending wedge.

NZD/USD trades around 0.6200 during the European session on Tuesday. On the daily chart, the NZD/USD pair has breached the upper boundary of the descending wedge. This suggests that selling pressure is weakening, and it can signal a potential bullish reversal, especially if followed by an upward breakout.

The 14-day Relative Strength Index (RSI) remains above the 50 level, signaling a bullish trend. Furthermore, the nine-day Exponential Moving Average (EMA) is above the 14-day EMA, indicating that the NZD/USD pair is experiencing short-term upward momentum and is expected to continue its rise.

On the upside, the NZD/USD pair seems to explore the region around its seven-month high of 0.6247 recorded on August 21. A break above this level could drive the pair toward the psychological level of 0.6300.

In terms of support, the NZD/USD pair may test the immediate nine-day EMA at 0.6181 level, followed by the upper boundary of the descending wedge at 0.6150 level. A return to the descending wedge may reinforce the bearish bias and put pressure on the pair to test the 50-day EMA at the 0.6122 level, followed by the lower boundary of the descending wedge at the 0.6080 level.

NZD/USD: Daily Chart