The NZD/USD pair’s recovery falters near 0.5920 as the US Dollar rebounds on renewed inflation concerns and escalating geopolitical tensions.

Key Factors:

• US Dollar Strength: Investors anticipate higher-for-longer US interest rates due to robust economic data and persistent inflation.
• Geopolitical Concerns: Escalating Israel-Iran tensions fuel risk aversion, boosting the safe-haven USD.
• RBNZ Rate Cut Expectations: Repricing of RBNZ rate cuts weighs on the NZD.

Technical Analysis:

• Resistance at 0.5940: The April 1 low near 0.5940 acts as a barrier for the NZD bulls.
• Bearish Bias: Price action remains below the 200-hour EMA (around 0.5950), and the RSI retreats from above 60.00, signaling bearish momentum.
• Key Support Levels: A break below April 17 low (0.5870) could trigger a decline towards the September 2023 low at 0.5847, followed by the psychological 0.5900 level.
• Bullish Potential: A sustained move above the March 18 high (0.6100) might drive the NZD/USD towards March 12 low (0.6135) and potentially the February 9 high (0.6160).