NZD/USD Price Forecast: Breaks above descending channel pattern near 14-day EMA at 0.6000

• NZD/USD tests the 14-day Exponential Moving Average at the 0.6000 level.
• The 14-day RSI remains below the 50 level, indicating an ongoing bearish bias for the pair.
• The immediate support appears at the upper boundary of the descending channel, aligned with the nine-day EMA at 0.5984 level.

The NZD/USD pair has recovered its recent losses from the previous session, trading around 0.5990 during the European hours on Thursday. Daily chart analysis indicates a weakening bearish bias, with the pair breaking above the nine-day Exponential Moving Average (EMA), aligned with the lower boundary of the descending channel.

However, the 14-day Relative Strength Index (RSI), a key momentum indicator, remains below the 50 level, suggesting a prevailing bearish trend. A further approach toward the 50 mark would improve the momentum of the NZD/USD pair.

Adding to this outlook, the nine-day Exponential Moving Average remains below the 14-day EMA, suggesting weakness in the short-term price momentum for the NZD/USD pair.

Regarding the resistance, the NZD/USD pair is testing the 14-day EMA at 0.6000 level. A break above this level would improve the price momentum and support the pair to explore the area around the psychological level of 0.6100 level.

On the downside, NZD/USD may find immediate support at the upper boundary of the descending channel, in case of re-entering the channel, aligned with the nine-day EMA at 0.5984 level.

A return into the channel would reinforce the bearish bias and put downward pressure on the NZD/USD pair to navigate the region around the lower boundary of the descending channel near a psychological level of 0.5900.

A break below the descending channel could strengthen the bearish bias and lead the NZD/USD pair to revisit the throwback support at the 0.5850 level.

NZD/USD: Daily Chart