The 50– hour simple moving average pressured the New Zealand Dollar lower against the US Dollar on Tuesday. The currency pair declined by 168 basis points or 2.76% in value during yesterday’s trading session.
The exchange rate is trading near the bottom border of a descending channel pattern at 0.5891 during the European session on Wednesday.
Most likely, a breakout could occur through the border of the descending channel pattern within this session.
However, if the channel pattern holds, the currency exchange rate could make a brief upside retracement towards the 50– hour SMA at 0.6005 today.
