NZD/USD Price Forecast: Remains below 0.5950, resistance appears at nine-day EMA

• NZD/USD may test the upper boundary of the descending channel near the nine-day EMA at 0.5961 level.
• The nine-day EMA staying below the 14-day EMA indicates persistent weakness in short-term price momentum.
• The pair may navigate the area around the lower boundary of the descending channel at 0.5860 level.

The NZD/USD pair holds ground after registering losses in the previous session, trading around 0.5920 during European hours on Wednesday. The daily chart analysis shows a strong bearish trend, with the NZD/USD pair moving downwards within a descending channel.

The nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, indicating continued weakness in short-term price momentum. Additionally, the 14-day Relative Strength Index (RSI), a key momentum indicator, is below the 50 mark, reflecting sustained bearish momentum. A further decline toward the 30 level would amplify this downward trend for the NZD/USD pair.

On the downside, the NZD/USD pair may find support around the psychological level of 0.5900. A break below this level could increase selling pressure, pushing the pair toward the lower boundary of the descending channel at 0.5860, with further throwback support at the psychological level of 0.5850.

In terms of resistance, the pair faces an immediate hurdle at the upper boundary of the descending channel near the nine-day EMA at 0.5961, followed by the 14-day EMA at 0.5977. A break above the 14-day EMA would strengthen price momentum, potentially enabling the NZD/USD pair to approach the psychological level of 0.6100.

NZD/USD: Daily Chart