The NZD/USD currency pair has seen a downturn for seven days straight, trading at approximately 0.5650 during Asian hours on Thursday. An analysis of the daily chart indicates that the price is moving downward within a descending channel, highlighting a persistent bearish trend.
In the short term, the NZD/USD pair is clearly under pressure, remaining below both the 9-day and 50-day exponential moving averages (EMAs), which are presently acting as dynamic resistance levels. The downward slope of these EMAs is intensifying selling pressure, although the 14-day Relative Strength Index (RSI) hovers around 28, suggesting an oversold condition. This could potentially slow the ongoing decline but isn’t expected to instigate a reversal just yet.
Initial support for the NZD/USD pair may be found at the lower boundary of the descending channel around 0.5630. If the price drops below this, it could approach a 14-month low of 0.5580 seen in November 2025. A break through this support would reinforce the bearish sentiment, pushing the pair to test levels not seen since March 2020, around 0.5485.
On the upside, the pair could advance toward a significant resistance level at the 9-day EMA situated at 0.5717 before potentially hitting the upper boundary of the descending channel near 0.5790. Additional resistance is found at the 50-day EMA, which is at 0.5826.
