NZD/USD Price Forecast: Remains subdued near 0.5600 support amid prevailing bearish bias

• NZD/USD could test key support at the lower boundary of the descending channel near 0.5560.
• The 14-day Relative Strength Index remains below 50, reinforcing the bearish outlook.
• The pair may target initial resistance at the nine-day Exponential Moving Average of 0.5654.

The NZD/USD pair loses ground following the previous session's gains, trading around 0.5610 during European trading hours on Tuesday. Technical analysis of the daily chart indicates a bearish bias, with the pair trending lower within a descending channel.

The 14-day Relative Strength Index (RSI) remains below the 50 mark, reinforcing the negative outlook. Additionally, NZD/USD continues to trade beneath the nine-day Exponential Moving Average (EMA), signaling weak short-term momentum.

On the downside, a decisive break below the psychological support level of 0.5600 could push the pair toward the key support at 0.5560, the lower boundary of the descending channel. A further decline below this level may intensify selling pressure, potentially dragging NZD/USD to 0.5516--its lowest level since October 2022, recorded on February 3.

Conversely, a recovery could see the pair targeting initial resistance at the nine-day EMA of 0.5654, followed by the descending channel's upper boundary at 0.5680 and the 50-day EMA at 0.5691. A breakout above the channel would weaken the bearish sentiment and open the door for further gains toward the three-month high of 0.5794, reached on January 24. 

NZD/USD: Daily Chart