NZD/USD Price Forecast: Remains subdued near 0.5650, descending channel's lower boundary

• NZD/USD continues to trade within a descending channel pattern, reflecting an ongoing bearish bias.
• An upward correction is indicated as the 14-day RSI is positioned below the 30 mark.
• The pair could test the descending channel's lower boundary at 0.5630 level.

The NZD/USD pair edges lower to near 0.5650 during the European hours on Monday. The technical analysis of the daily chart suggests an ongoing bearish bias as the pair is confined within a descending channel pattern.

Additionally, the NZD/USD pair remains below the nine- and 14-day Exponential Moving Averages (EMAs), signaling weak short-term price momentum, which could mean that the price is likely to continue experiencing downward pressure.

Furthermore, the 14-day Relative Strength Index (RSI) remains below the 30 level, reflecting an oversold condition, potentially triggering an upward correction.

Regarding its support, the NZD/USD could test the lower boundary of the descending channel at 0.5630 level, followed by the 26-month low of 0.5607 level, which was recorded on December 19.

On the upside, NZD/USD may find initial resistance at the nine-day EMA at 0.5708 level, followed by the 14-day EMA at 0.5743 level. A break above this level could improve the short-term price momentum and support the pair to test the descending channel's upper boundary at the 0.5800 level.

NZD/USD: Daily Chart