NZD/USD Price Forecast: Falls toward 0.5700 after RBNZ policy decision

• NZD/USD may target its initial support at the lower boundary of the descending channel around 0.5770.
• The pair shows weaker short-term momentum, staying under the nine-day Exponential Moving Average.
• The primary barrier appears at the nine-day EMA of 0.5908.

NZD/USD continues its three-day losing streak, trading around 0.5830 during the Asian hours on Wednesday. The pair loses ground after the Reserve Bank of New Zealand (RBNZ) announced to cut interest rates by 25 basis points, bringing the Official Cash Rate (OCR) to 3%, as expected.

The technical analysis of the daily chart indicates a persistent bearish bias, as the pair moves downwards within the descending channel pattern. The short-term price momentum is weaker as the NZD/USD pair is positioned below the nine-day Exponential Moving Average (EMA). Additionally, the bearish outlook strengthens as the 14-day Relative Strength Index (RSI) remains below the 50 mark.

On the downside, the NZD/USD pair could find its immediate support at the lower boundary of the descending channel around 0.5770. A break below the channel could reinforce the bearish bias and pave the way for a deeper decline toward 0.5485, the lowest level since March 2020.

The NZD/USD pair may target the primary barrier at the nine-day EMA of 0.5908, followed by the 50-day EMA at 0.5953 and the descending channel's upper boundary around 0.5980. A break above this confluence resistance zone may improve the short- and medium-term price momentum and support the pair to approach the 10-month high at 0.6121, which was recorded on July 1.

NZD/USD: Daily Chart