At the level of 0.5540, NZD/USD may test the lower boundary of the descending channel.
A bullish divergence is indicated by the 14-day RSI's continued below-the-30 level.
Around the nine-day EMA at the 0.5596 level, the first resistance is visible.
The NZD/USD pair is currently trading at 0.5550 during European hours on Monday, continuing its downward trend that started on January 7. As the pair trades close to the lower edge of a descending channel, the technical analysis of the daily chart shows a persistent bearish bias.
Since the 14-day RSI is still below the 30-level, it indicates oversold conditions that could lead to a correction. Nonetheless, bearish sentiment may be reinforced if the RSI stays close to the 30-point threshold.
Furthermore, the NZD/USD pair is still below the nine- and 14-day Exponential Moving Averages (EMAs), indicating that there is likely to be ongoing downward pressure and weak short-term price momentum.
The NZD/USD pair is trading close to the lower edge of its descending channel at the 0.5540 level, with the next support at 0.5526, which was reached on December 25 and represents its lowest level since October 2022.
The nine-day EMA at the 0.5596 level and the 14-day EMA at the 0.5615 level could be the first points of resistance for the NZD/USD pair. If this level is broken, the short-term price momentum may improve and the pair may be supported in testing the upper boundary of the descending channel at the psychological level of 0.5700.
A bullish divergence is indicated by the 14-day RSI's continued below-the-30 level.
Around the nine-day EMA at the 0.5596 level, the first resistance is visible.
The NZD/USD pair is currently trading at 0.5550 during European hours on Monday, continuing its downward trend that started on January 7. As the pair trades close to the lower edge of a descending channel, the technical analysis of the daily chart shows a persistent bearish bias.
Since the 14-day RSI is still below the 30-level, it indicates oversold conditions that could lead to a correction. Nonetheless, bearish sentiment may be reinforced if the RSI stays close to the 30-point threshold.
Furthermore, the NZD/USD pair is still below the nine- and 14-day Exponential Moving Averages (EMAs), indicating that there is likely to be ongoing downward pressure and weak short-term price momentum.
The NZD/USD pair is trading close to the lower edge of its descending channel at the 0.5540 level, with the next support at 0.5526, which was reached on December 25 and represents its lowest level since October 2022.
The nine-day EMA at the 0.5596 level and the 14-day EMA at the 0.5615 level could be the first points of resistance for the NZD/USD pair. If this level is broken, the short-term price momentum may improve and the pair may be supported in testing the upper boundary of the descending channel at the psychological level of 0.5700.
