The 50-hour simple moving average pressured the New Zealand Dollar lower against the US Dollar on Wednesday. The currency pair depreciated about 75 base points during yesterday’s trading session.
The Kiwi is currently trading near the lower band of a descending channel at 0.6592 and could be set for a breakout.
Technical indicators all pointed out that the currency exchange rate will continue its decline during the following trading session.
However, if the channel pattern holds, a surge towards the 50-hour SMA resistance level could be expected today.