Downside risks prevailed in the market on Wednesday, thus sending the New Zealand Dollar to plunged about 80 base points against the US Dollar. As a result, the currency pair broke the three weeks descending channel.
Given that the exchange rate is trading below the lower boundary of the three weeks descending channel, it is expected that the price target the weekly S2 at 0.6410 within this session.
However, if the support level at 0.6485 holds, a reversal north towards the 50-hour simple moving average at 0.6550 will be the realistic target for the Kiwi during the following trading session.
