NZD/USD Price Forecast: Tests descending channel’s lower boundary below 0.5850

NZD/USD may find support around the lower boundary of the descending channel at the 0.5800 level.

A corrective rebound is possible once the 14-day RSI falls below the 30 mark.

The nine-day EMA at the level of 0.5867 would act as an immediate barrier.

NZD/USD extends its losing streak for the fifth successive day, trading around 0.5840 during European trading hours on Tuesday. A review of the daily chart highlights a deepening bearish trend as the pair moves within a descending channel pattern.

The nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, signaling persistent weakness in short-term price momentum. Furthermore, the 14-day Relative Strength Index (RSI) is hovering just above the 30 level, reflecting the prevailing bearish sentiment. A dip below 30 would indicate oversold conditions, potentially paving the way for a corrective rebound.

Regarding its support, the NZD/USD pair tests the psychological level of 0.5800, which coincides with the lower boundary of the descending channel. A decisive break below this level would strengthen the bearish outlook, increasing downward pressure and potentially driving the pair toward its two-year low of 0.5772, last seen in November 2023.

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