NZD/USD Price Forecast: Holds ground above 0.6250, lower boundary of the ascending channel

• NZD/USD gains ground as it maintains its position within an ascending channel pattern.
• The 14-day RSI remains above the 50 level, supporting the notion of an ongoing uptrend.
• A break below the ascending channel would weaken the ongoing bullish bias.

NZD/USD recovers its recent losses from the previous session, trading around 0.6280 during the early European hours on Thursday. On the daily chart, the pair is testing the lower boundary of the ascending channel pattern. A successful breach below the ascending channel would weaken the ongoing bullish bias.

However, the 14-day Relative Strength Index (RSI) remains above the 50 level, confirming the ongoing bullish trend is intact. Additionally, the nine-day Exponential Moving Average (EMA) is positioned above the 50-day EMA, suggesting the short-term price trend is stronger for the NZD/USD pair.

On the upside, the NZD/USD pair may explore the region around the upper boundary of the ascending channel at the 0.6380 level. A breakthrough above the upper boundary could strengthen bullish bias and support the pair to revisit the 15-month high of 0.6409 level, recorded in December 2023.

In terms of support, the NZD/USD pair may test the immediate nine-day Exponential Moving Average (EMA) at the 0.6251 level. A break below this level could weaken the bullish sentiment and put pressure on the pair to approach the 50-day EMA at 0.6156 level, followed by its five-week low of 0.6106 level.

NZD/USD: Daily Chart