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.

On the upside, immediate resistance lies at the nine-day EMA around 0.5867, followed by the 14-day EMA at 0.5888, which aligns with the upper boundary of the descending channel. A breakout above this channel could weaken bearish momentum and pave the way for the pair to test the psychological resistance level of 0.6000.

NZD/USD: Daily Chart