The New Zealand Dollar depreciated about 84 base points against the US Dollar on Friday. The currency pair was pressured south by the 50-hour simple moving average.
However, the exchange rate bounced off from the lower boundary of an ascending channel pattern at 0.6789 during the morning hours of Monday’s trading session and currently testing a resistance level formed by the 50-hour SMA at 0.6818.
If the currency exchange rate passes the 50-hour SMA, the next target will be near the upper boundary of a descending channel at 0.6864.
Although, if the resistance level holds, a potential breakout could be expected within this session.
