NZD/USD Price Forecast: Holds steady near 0.5870 as bullish bias remains

The NZD/USD pair remains relatively stable near 0.5870 during the European session on Tuesday, as traders exhibit caution due to uncertainties surrounding US-Iran peace talks. Iran has denied negotiations with the US, causing a negative reaction from President Donald Trump and undermining hopes for a diplomatic resolution to the ongoing conflict.

Meanwhile, rising crude oil prices are reigniting concerns about inflation, bolstering expectations of a rate hike from the US Federal Reserve, which in turn strengthens the US Dollar and hampers any upside for the NZD/USD pair. However, New Zealand's Reserve Bank's (RBNZ) hawkish stance helps to offset losses for the New Zealand Dollar.

Key triggers for a potential bullish move for NZD/USD include a bounce off the 200-period Simple Moving Average (SMA) on the 4-hour chart and breaking through the 0.5865 supply zone. This has led to a constructive near-term bullish bias, with spot prices consolidating above the resistance-turned-support level. The Relative Strength Index (RSI) is currently at 60, indicating that it is not yet in overbought territory.

Moving Average Convergence Divergence (MACD) has also fallen just below its zero line, suggesting a slight loss of upside conviction. While there are mixed momentum indicators, they do not indicate a full reversal. Any further decline below 0.5865 is more likely to be capped by the 200-period SMA at 0.5757, where buyers are expected to support the recovery structure.

For the NZD/USD pair to continue advancing, it must move above the recent swing high of 0.5909. As long as the pair stays above the 200-period SMA floor, the bullish bias will persist.