Downside risks dominated the New Zealand Dollar against the US Dollar on Wednesday. As a result, a breakout occurred through the lower boundary of an ascending channel pattern.
Given that a breakout has occurred, the currency pair could continue to decline during the following trading session. The possible target for bearish traders would be near the weekly support level at 0.7000.
However, if the exchange rate breaks a resistance cluster formed by the 50-, 100– and 200– hour SMAs, a surge towards the 0.7080 level within the following trading session.
