NZD/USD Price Forecast: Kiwi fails to find follow-through above 0.5900

The New Zealand Dollar (NZD) experienced a decline against the US Dollar (USD) on Tuesday due to a growing sense of caution in the market. The pair retreated from its previous gains to hit the 0.5880 level following a failure to surpass 0.5926. This downward movement was further exacerbated by the expiration of the US-Iran Memorandum of Understanding without any progress in the peace process, leading to heightened tensions between Washington and Tehran.

These escalating threats have resulted in a closure of the key Strait of Hormuz, which has contributed to rising oil prices and put additional pressure on the risk-sensitive NZD. Despite trading near the 200-day simple moving average (SMA) of 0.5834, the NZD/USD pair demonstrated a somewhat bullish bias, supported by momentum indicators that indicated waning upside pressure.

The Relative Strength Index (RSI) declined below 60 and approached the 50 midline, while the Moving Average Convergence Divergence (MACD) slipped below the zero line, indicating that bulls were losing confidence. The pair's immediate support can be found at the ascending trendline from late June lows, currently around 0.5860, although the primary support lies at the 200-day SMA at 0.5834.

A breakdown below this level could signal a more significant correction, potentially pushing the NZD lower towards the late July lows near 0.5760. On the upside, bulls would require a clear break of the 78.6% Fibonacci retracement of the June downtrend, located at 0.5916, to halt bearish sentiment and pave the way for further gains towards the six-month highs in the 0.600 area, specifically around May 7's high of 0.600.