The New Zealand Dollar surged by 53 pips or 0.83% in value against the US Dollar on Friday. The currency pair breached the 50– hour simple moving average during Friday’s trading session.
The exchange rate is currently trading near the lower boundary of a descending channel pattern at 0.6320 and could be set for a breakout.
If this breakout occurs, a decline towards the weekly support level at 0.6281 could be expected today.
However, if the descending channel holds, the currency exchange rate could make a brief upside movement within the following trading session.
