NZD/USD Price Forecast: Tests two-year lows after breaking below 0.5800

• NZD/USD tests its two-year low at 0.5772, a level last seen in November 2023.
• An upward correction could be triggered once the 14-day RSI drops below the 30 mark.
• The nine-day EMA at 0.5839 appears as the primary resistance level.

The NZD/USD pair extends its gains for the second successive day, trading around 0.5780 during the European session on Wednesday. Technical analysis of the daily chart suggests a strengthening bearish bias as the pair is confined within a descending channel pattern.

Additionally, the NZD/USD pair remains trading below the nine- and 14-day Exponential Moving Averages (EMAs), signaling weak short-term price momentum. Furthermore, the 14-day Relative Strength Index (RSI) falls toward the 30 level, reflecting a predominantly bearish sentiment. A drop below the 30 level would indicate an oversold condition, potentially triggering an upward correction.

The immediate support for NZD/USD lies at the two-year low of 0.5772 level, last seen in November 2023. A break below this level could strengthen the bearish sentiment and push the pair to approach the lower boundary of the descending channel at 0.5720 level.

On the upside, NZD/USD may find initial resistance at the nine-day EMA at 0.5839 level, followed by the descending channel’s upper boundary at 0.5850 level. A break above this channel would weaken the bearish bias and support the pair to explore the region around its four-week high of 0.5930 level.

NZD/USD: Daily Chart