The New Zealand Dollar has depreciated substantially against the Canadian Dollar during the past two months. This slump started when the currency pair reversed from the upper boundary of a descending channel on June 24. Furthermore, this 659 base points decline was constrained by the 100-hour SMA.
The low positioning of technical indicators on both the daily and the weekly time frames suggest that the NZD/CAD currency exchange rate could continue moving in the junior descending channel during the following trading sessions. However, given that the rate has moved closer to the up border of the descending channel, and the 55-hour simple moving average has fallen below the price, a breakout could be expected within this session.
