NZD/USD Price Forecast: Tests 0.5850 to break below the descending channel

NZD/USD may depreciate further as daily chart analysis indicates a strengthening bearish bias.

The pair attempts to break below the lower boundary of the descending channel at the 0.5850 level.

The immediate resistance appears at the nine-day EMA at 0.5901, followed by the 14-day EMA at 0.5928.

The NZD/USD pair retraces its recent gains, trading around 0.5850 during the European hours on Monday. A review of the daily chart highlights a growing bearish bias, as the pair tests the lower boundary of its descending channel pattern.

The nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, signaling persistent weakness in short-term price momentum. Meanwhile, the 14-day Relative Strength Index (RSI) hovers around the 30 level, indicating oversold conditions for the NZD/USD pair and hinting at the possibility of an upward correction.

Regarding the support, the NZD/USD pair is testing the lower boundary of the descending channel, which aligns with the throwback support at the psychological level of 0.5850. A decisive break below this channel would reinforce the bearish outlook, increasing downward pressure and potentially driving the pair toward its two-year low of 0.5772, last seen in November 2023.