The NZD/USD pair showed little change, trading around 0.5870 during European hours on Thursday, following some modest gains the previous day. A look at the daily chart indicates that the bearish trend is still present, as the pair remains within a descending channel.
Currently, the NZD/USD is positioned just below the 9-day and 50-day exponential moving averages (EMAs), which hints at a slight bearish sentiment. Trading below these moving averages suggests that the bullish momentum may face resistance near this cluster, and the 14-day Relative Strength Index (RSI) hovering near 48 implies that while upward momentum is waning, it isn’t entirely in oversold territory.
If we look at potential downside, the NZD/USD might drop toward the lower boundary of the descending channel at around 0.5810, followed by a six-week low of 0.5794 noted on April 13. Should it break below this support area, it could apply further downward pressure and bring it closer to the nearly six-month low of 0.5681 observed on April 6.
On the flip side, the pair could attempt to retest the near-term resistance at the 50-day EMA positioned at 0.5879, along with the 9-day EMA at 0.5882. A sustained move above these moving averages could bolster support for the pair, allowing it to aim for the upper limit at 0.5940, potentially leading to a test at 0.6014, which represents a three-month high achieved on February 26.
