NZD/USD Price Forecast: Falls toward 0.5700 as medium-term price momentum weakens

NZD/USD could test the psychological support at the 0.5700 level

The daily chart indicates a prevailing bullish bias, though the 14-day RSI dropping below 50 suggests a possible bearish shift.

A rebound above the 50-day EMA could revive medium-term momentum, paving the way for testing the nine-day EMA at 0.5744.

NZD/USD continues its losing streak that began on March 18, trading around 0.5710 during European hours on Tuesday. The daily chart's technical analysis reflects a prevailing bullish bias, with the pair remaining within an ascending channel pattern. However, the 14-day Relative Strength Index (RSI) dipping below 50 signals a potential bearish shift.

Additionally, NZD/USD's decline below the nine- and 50-day Exponential Moving Averages (EMAs) suggests short- to medium-term weakness, indicating a transient loss of momentum. Despite this, the nine-day EMA staying above the 50-day EMA reinforces the broader bullish trend, pointing to an ongoing recovery.

The clear break below the 50-day EMA has dampened medium-term momentum, increasing downward pressure on the NZD/USD pair to test the psychological support at the 0.5700 level, followed by the lower boundary of the ascending channel around the 0.5660 level. A breakdown below this channel could strengthen the bearish bias, potentially driving the pair toward the monthly low of 0.5593, recorded on March 3.

On the upside, a rebound above the 50-day EMA at 0.5716 could restore medium-term momentum, allowing the NZD/USD pair to test the nine-day EMA at 0.5744. A breakout above this level may strengthen short-term momentum, pushing the pair toward the three-month high of 0.5832, reached on March 18. Further resistance lies near the upper boundary of the ascending channel at approximately 0.5880.

NZD/USD: Daily Chart