NZD/USD Price Forecast: Tests descending channel's upper boundary above 14-day EMA, 0.5900

• NZD/USD tests the descending channel's upper boundary at the 0.5920 level.
• The bullish sentiment would be confirmed once the 14-day RSI breaks above the 50 mark.
• 14- and nine-day EMAs at 0.5892 and 0.5883, respectively, act as immediate supports.

NZD/USD recovers from its recent losses, trading around 0.5910 during the Asian session on Friday. A closer look at the daily chart suggests a potential shift in momentum from a bearish to a bullish bias, as the pair has broken above the descending wedge pattern. Simultaneously, another descending channel pattern has formed, and a breakout above this channel would further strengthen the bullish outlook.

Additionally, NZD/USD has moved above both the nine- and 14-day Exponential Moving Averages (EMAs), indicating strength in short-term price momentum. However, the 14-day Relative Strength Index (RSI) remains below the 50 level, suggesting that the prevailing bearish sentiment is still in play. A move above the 50 level would confirm a shift to bullish sentiment. 

On the upside, NZD/USD is testing the upper boundary of the descending channel pattern at the 0.5920 level. A break above this level could pave the way for the pair to target the psychological 0.6000 level, followed by minor resistance at 0.6038. 

Immediate support for NZD/USD lies at the 14- and nine-day EMAs at 0.5892 and 0.5883, respectively. A break below these levels could exert downward pressure on the pair, with the next key "throwback support" level of 0.5850, followed by a two-year low at 0.5772, last seen in November 2023.

NZD/USD: Daily Chart