NZD/USD Price Forecast: Moves above 0.6200, targets a seven-month high

• NZD/USD could test the seven-month high of 0.6247 due to the bullish bias that prevails.
• The nine-day EMA is positioned above the 50-day EMA, signaling short-term upward momentum to prevail.
• If the 14-day RSI surpasses the 70 level, it could signal that the pair is overbought and a potential short-term correction.

NZD/USD recovers recent losses from the previous session, trading around 0.6220 during Tuesday’s European hours. On the daily chart, the pair is moving higher within the upper boundary of an ascending channel, supporting a bullish outlook.

The 14-day Relative Strength Index (RSI) is currently just below the 70 level, confirming the bullish sentiment. However, if the RSI moves higher, it could signal that the currency pair is becoming overbought, suggesting a potential short-term correction.

Additionally, the nine-day Exponential Moving Average (EMA) is positioned above the 50-day EMA, signaling that the NZD/USD pair is experiencing short-term upward momentum and is likely to continue rising.

On the upside, the NZD/USD pair may encounter immediate resistance around the upper boundary of the ascending channel at 0.6230, followed by the seven-month high of 0.6247, recorded on August 21.

In terms of support, the nine-day EMA at 0.6149 serves as the immediate support level. A break below this could weaken the bullish bias, potentially leading the pair to test the lower boundary of the ascending channel at 0.6070, followed by the 50-day EMA at 0.6064.

If the pair breaches the latter, a bearish sentiment may emerge, putting pressure on the NZD/USD to move toward the "throwback support" region around the 0.5850 level.

NZD/USD: Daily Chart