NZD/USD Outlook: Drops under 0.5800, approaching lowest level in two months

NZD/USD Continues Downward Trend for Third Consecutive Day

During Thursday's European trading session, NZD/USD remains under pressure, hovering near 0.5780 as it extends its decline for a third straight day. Analysis of the daily chart reveals a prevailing bearish outlook, with the currency pair consolidating within a downward-sloping channel.

Moreover, NZD/USD maintains a slight bearish tone, as prices are consistently held below the nine-day Exponential Moving Average (EMA), amplifying the downward momentum. The 50-day EMA has leveled off, failing to spark renewed buying interest, which highlights the weakening bullish sentiment. The 14-day Relative Strength Index (RSI) sits near 39, remaining under the neutral 50 mark, which signals ongoing selling activity rather than an oversold condition.

Looking at support levels, the pair’s first potential floor is at the two-month low of 0.5762, last seen on March 23. Should this level give way, further declines could see NZD/USD challenge the lower boundary of the descending channel, close to 0.5660.

On the resistance side, the initial hurdle is the nine-day EMA at 0.5832. Beyond that, the upper edge of the descending channel near 0.5860 and the medium-term average at 0.5885 present additional barriers. A sustained move above this cluster of resistance could shift the outlook to bullish, paving the way for a test of the monthly high at 0.5996, reached on March 2.

NZD/USD Daily Chart Overview

(This technical analysis was generated with the assistance of AI tools.)