The New Zealand Dollar (NZD) has continued its downward trend against the US Dollar (USD), marked by a sustained losing streak that began on June 17. During the Asian trading hours on Friday, the NZD/USD pair was observed trading around 0.5650.
Technical analysis indicates that the spot price is firmly moving downward within a descending channel, reinforcing a prevailing bearish sentiment. The near-term outlook for the NZD/USD pair remains bearish as it has consistently traded below both the nine-period Exponential Moving Average (EMA) at 0.5703 and the 50-period EMA at 0.5820. This positioning suggests ongoing downside pressure, with the alignment of short and medium-term EMAs situated above the current price level.
Adding to the bleak outlook, the 14-day Relative Strength Index (RSI) stands at 28, indicating the NZD is in oversold territory. While this reflects that the recent decline may be overextended, there are currently no clear signals indicating a potential recovery.
In terms of support levels, the NZD/USD pair may find initial backing at the lower boundary of the descending channel, approximately at 0.5620. If the downward trend continues, the pair could test the 14-month low of 0.5580, recorded in November 2025. A significant breach below this confluence support zone could further entrench the bearish sentiment, potentially leading the pair towards 0.5485, the lowest point observed since March 2020.
On the flip side, if there is a retreat from the current downtrend, the NZD/USD pair could attempt to rise towards its primary resistance at the nine-day EMA of 0.5703. Additional resistance is seen at the upper boundary of the descending channel, around 0.5760, with further barriers at the 50-day EMA, which stands at 0.5819.
In the broader context of the currency market, the New Zealand Dollar has exhibited weaknesses against various major currencies today. Notably, it was reported as the weakest performer against the Swiss Franc. The table detailing the percentage changes of the NZD against key currencies reflects a consistent downtrend, further underscoring the currency’s unstable performance in the current trading environment.
Overall, the current landscape for the New Zealand Dollar against the US Dollar and other currencies suggests that traders and investors will need to closely monitor the technical indicators and economic conditions that could impact future movements.
