NZD/USD Price Forecast: Moves below 0.5850 toward an oversold zone

• NZD/USD depreciates toward the oversold region around the lower boundary of the descending channel at 0.5810 level.
• The nine-day EMA remains below the 14-day EMA, signaling continued weakness in short-term price momentum.
• The immediate resistance appears at the nine-day EMA at the level of 0.5875, followed by the descending channel’s lower boundary.

The NZD/USD pair continues its losing streak for the fourth consecutive day, trading near 0.5840 during European hours on Monday. An analysis of the daily chart indicates a strengthening bearish trend, as the pair remains confined within a descending channel pattern. 

The nine-day Exponential Moving Average (EMA) stays below the 14-day EMA, indicating sustained weakness in short-term price momentum. Additionally, the 14-day Relative Strength Index (RSI) hovers just above the 30 mark, underscoring bearish sentiment. A drop below 30 would signal oversold conditions, potentially setting the stage for a corrective rebound. 

On the downside, the NZD/USD pair may find support near the lower boundary of the descending channel, around 0.5810 level. A decisive break below this level would reinforce the bearish outlook, intensifying downward pressure and possibly pushing the pair toward its two-year low of 0.5772 level, last recorded in November 2023. 

Regarding its upside, immediate resistance is located at the nine-day EMA at the level of 0.5873, followed by the 14-day EMA at 0.5895 level, aligning with the upper boundary of the descending channel. A breakout above the descending channel could diminish bearish momentum, opening the door for the pair to target the psychological level of 0.6000.

NZD/USD: Daily Chart