The New Zealand Dollar bounced off the lower boundary of a junior descending channel at 0.6209 on Tuesday. As a result, the currency pair appreciated about 48 basis points.
The exchange rate made a U-turn down after hitting a resistance cluster formed by the monthly S1 and the 50– hour simple moving average at 0.6247 during the morning hours of Wednesday’s trading session.
The NZD/USD currency pair will most likely continue to trade south within the following trading session. A potential breakout through the lower boundary of the junior descending channel pattern could occur today.
