The New Zealand Dollar has been trading in a junior descending channel pattern against the US Dollar since the beginning of November. The channel pattern was formed on November 4.
The exchange rate is currently testing a resistance cluster formed by the upper boundary of the descending channel and the combination of the 50– hour SMA and the monthly pivot point at 0.6350.
If the resistance cluster holds, the currency exchange rate will likely continue to trade in the channel pattern in the nearest future.
However, if the NZD/USD pair breaks the descending channel, a surge towards the 0.6400 mark could be expected.
