NZD/USD Price Forecast: Hovers near 0.5650, dovish RSI reflects a growing bearish bias

• NZD/USD hovers around the descending channel’s lower boundary, reflecting a growing bearish bias.
• The bearish sentiment is being reinforced as the RSI maintains its position below the 30 mark.
• The initial resistance appears around the nine-day EMA at the 0.5708 level.

The NZD/USD pair remains tepid for the second successive day, trading around 0.5650 during the European hours on Tuesday. The technical analysis of the daily chart indicates a growing bearish bias as the pair remains near the lower boundary of a descending channel.

The 14-day Relative Strength Index (RSI) remains below the 30 level, signaling oversold conditions that may prompt a corrective bounce. However, if the RSI continues to hover near the 30 mark, it could further strengthen bearish sentiment.

Additionally, the NZD/USD pair is trading below the nine- and 14-day Exponential Moving Averages (EMAs), reflecting weak short-term price momentum and suggesting that downward pressure is likely to persist.

Regarding its support, the NZD/USD hovers near the lower boundary of the descending channel at 0.5630 level, followed by the 26-month low of 0.5607 level, which was recorded on December 19. A decisive break below this critical region would reinforce the bearish sentiment and push the pair to navigate the area around its multi-year low at 0.5518 level, last seen in October 2022.

The NZD/USD pair may find initial resistance at the nine-day EMA at 0.5708 level, followed by the 14-day EMA at 0.5743 level. A break above this level could improve the short-term price momentum and support the pair to test the descending channel’s upper boundary at the 0.5800 level.

NZD/USD: Daily Chart