The New Zealand Dollar depreciated about 35 basis points against the US Dollar on Tuesday. The currency pair tested the lower boundary of an ascending channel pattern at 0.6390 during the morning hours of today’s session.
Given that the exchange rate is trading near the bottom border of the ascending channel, a breakout could occur today.
If this breakout occurs, a decline towards the weekly pivot point and the 200– hour simple moving average at 0.6340 could be expected within this session.
However, if the channel pattern holds, the currency exchange rate will likely continue its upward movement in the short-term.
