The New Zealand Dollar declined by 218 pips or 3.72% in value against the US Dollar on Friday. The currency pair breached the 50– hour simple moving average during Friday’s trading session.
Everything being equal, the exchange rate will most likely continue to decline until it reaches a support level formed by the weekly S1 at 0.5397.
If the weekly support level holds, the NZD/USD pair could make a brief upward movement in the short-term.
However, if the currency exchange rate breaks the support line, a decline towards the 0.5200 mark could be expected during the following trading session.
