The Australian Dollar has declined by 189 pips or 1.75% against the New Zealand Dollar since November 5. The currency pair tested the lower boundary of a descending channel pattern at 1.0550 on November 12. All things being equal, the exchange rate might continue to edge lower during this week’s trading sessions. A breakout through the lower line of the descending channel pattern could occur.
However, if the channel pattern holds, a surge towards a resistance cluster formed by the 200– period simple moving average and the weekly R1 at 1.0711 could be expected during the following trading sessions.
