NZD/USD Price Forecast: Falls toward 0.5950 within the descending channel

• NZD/USD continues to depreciate within the descending channel pattern, suggesting a bearish bias.
• A drop in the 14-day RSI to the 30 level would indicate an oversold condition, potentially signaling an upcoming upward correction.
• The immediate barrier appears at the lower boundary of the descending channel near the 0.5940 level.

The NZD/USD pair continues its losing streak for a third consecutive session, trading near 0.5980 during Tuesday's European session. Daily chart analysis indicates the pair moves downward within a descending channel pattern, signaling a bearish bias.

Furthermore, the nine-day Exponential Moving Average (EMA) is positioned below the 14-day EMA, reinforcing the ongoing bearish trend for the NZD/USD pair. Short-term price momentum remains weak, suggesting that downward pressure may persist.

The 14-day Relative Strength Index (RSI), a key momentum indicator, currently sits just above the 30 level. Should it fall below this threshold, it would indicate an oversold condition, potentially signaling a forthcoming upward correction for the NZD/USD pair.

On the downside, the NZD/USD pair may target the lower boundary of the descending channel near the 0.5940 level. A break below this support level could push the pair toward the "pullback support" around 0.5850.

For resistance, the initial hurdle lies at the upper boundary of the descending channel, near the nine-day Exponential Moving Average (EMA) around 0.6016, followed by the 14-day EMA at 0.6043. A sustained break above these EMAs could shift the pair toward a short-term bullish bias, potentially setting up a move toward the psychological 0.6100 level.

NZD/USD: Daily Chart