It holds ground above 0.6250, the lower limit of the ascending channel

• NZD/USD is gaining ground as it holds position in 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 uptrend.

NZD/USD is recovering recent losses from the previous session, trading around 0.6280 in early European hours on Thursday. On the daily chart, the pair is testing the lower limit of the ascending channel pattern. A successful break below the ascending channel would weaken the ongoing uptrend.

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

On the upside, NZD/USD may explore the region around the upper boundary of the ascending channel at the 0.6380 level. A break above the upper limit could strengthen the uptrend and support the pair to revise 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 dampen the bullish sentiment and put pressure on the pair to approach the 50-day EMA at 0.6156, followed by the five-week low of 0.6106.

NZD/USD: Daily chart