The New Zealand Dollar appreciated by 236 pips or 3.80% in value against the US Dollar on Monday. The currency pair tested a resistance cluster formed by the weekly R1 and the monthly R1 at 0.6434 during yesterday’s trading session.
Currently, the exchange rate is testing a support cluster formed by the 50-, 100– and 200– hour SMAs at 0.6313.
If the support cluster holds, a surge towards the upper boundary of a descending channel pattern at 0.6434 could be expected today.
However, technical indicators suggest that the currency exchange rate could continue to edge lower within this session.
