The New Zealand Dollar (NZD) failed to break through the 0.5980 resistance level — the September 11 high — during Tuesday’s session but continues to hold its broader bullish structure. Risk-on sentiment, fueled by expectations of a dovish Federal Reserve (Fed) rate cut on Wednesday, is providing support for the pair.
The US Dollar (USD) remains under pressure, with the USD Index sliding to a fresh two-month low of 97.05 earlier today. Markets are pricing in a 25-basis-point cut from the Fed, alongside signals of further easing, boosting appetite for risk-sensitive currencies such as the Kiwi.
Technical outlook
NZD/USD has been forming a series of higher highs and higher lows since early September, with the latest price action shaping an ascending triangle pattern — typically a continuation setup that favors further upside.
A decisive break above 0.5980 would expose the August 13 peak just below the 0.6000 psychological threshold, followed by the July 28 high around 0.6030.
On the downside, immediate support is seen between the triangle base at 0.5960 and the September 15 low at 0.5950. A deeper pullback would bring attention to 0.5915, aligning with the September 1 high and September 11 low.
