The New Zealand Dollar has depreciated massively against the Canadian Dollar since the end of September after the currency pair reversed from the upper boundary of a three-month descending channel at 0.8688.
The exchange rate tested the monthly support level at 0.8362 during the morning hours of today’s session. From a theoretical point of view, the pair could reverse from that level and aim at a resistance cluster formed by the weekly and the monthly PPs near the 0.8439 mark within this session.
However, if this support line is unable to hold, the currency exchange rate will continue its downside momentum and target the bottom border of the three months descending channel at 0.8250 during the following trading sessions.
