NZD/USD Price Forecast: Tests descending channel's upper boundary above 0.5950

• NZD/USD tests the upper boundary of the descending channel near the nine-day EMA at 0.5980 level.
• The 14-day RSI remains below the 50 level; a further decline toward the 30 mark would strengthen bearish bias.
• The pair may depreciate toward the lower boundary of the descending channel at 0.5880 level.

The NZD/USD pair remains subdued for the second consecutive day, trading around 0.5960 during European hours on Monday. Analysis of the daily chart highlights a strong bearish bias, as the pair remains within a descending channel pattern.

The 14-day Relative Strength Index (RSI), a key momentum indicator, stays below the 50 level, indicating sustained bearish momentum. A further dip toward the 30 level would intensify this downward trend for the NZD/USD pair.

Additionally, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, signaling continued weakness in short-term price momentum for the NZD/USD pair.

On the downside, NZD/USD may navigate the region around the psychological level of 0.5900, followed by the lower boundary of the descending channel at 0.5880 level. A break below the descending channel could strengthen the bearish bias and lead the pair to revisit the throwback support at the 0.5850 level.

Regarding the resistance, the NZD/USD pair finds an immediate barrier at the upper boundary of the descending channel at the nine-day EMA at 0.5980 level, followed by the 14-day EMA at 0.5994 level.

A break above the 14-day EMA would improve the price momentum and support the NZD/USD pair to explore the area around the psychological level of 0.6100 level.

NZD/USD: Daily Chart