NZD/USD PRICE FORECAST: REMAINS BELOW 0.6000, UPPER BOUNDARY OF THE DESCENDING CHANNEL
- NZD/USD may test the upper boundary of the descending channel pattern.
- A drop in the 14-day RSI below 30 mark would indicate an oversold condition, potentially suggesting an upcoming upward correction.
- The pair may aim for the lower boundary of the descending channel near the 0.5920 level.
The NZD/USD pair extends gains for the second consecutive session, trading near 0.5980 during Thursday's European session. Daily chart analysis shows a bearish bias, with the pair moving within a descending channel. A breakout above this descending channel could signal a potential shift in momentum.
Further supporting this outlook, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA, reinforcing the bearish sentiment for NZD/USD. Short-term momentum appears weak, indicating continued downward pressure.
The 14-day Relative Strength Index (RSI), a key momentum indicator, hovers just above 30. A dip below this threshold would signal an oversold condition, potentially hinting at an impending upward correction for the NZD/USD pair.
On the downside, NZD/USD may approach the lower boundary of the descending channel near 0.5920. A decisive break below this support could drive the pair toward the next "pullback support" around the 0.5850 level.
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