The New Zealand Dollar declined by 61 pips or 0.95% in value against the US Dollar on Friday. The currency pair tested the lower boundary of a descending channel pattern at 0.6398 during Friday’s trading session.
Given that the exchange rate is trading near the bottom border of the channel pattern, a breakout might occur within this session.
If the breakout occurs, a decline towards a support cluster formed by the weekly S1 and the monthly S1 at 0.6354 could be expected today.
However, if the descending channel pattern holds, the currency exchange rate could make a brief retracement towards the 0.6440 area within this session.
