On Friday, the New Zealand Dollar declined by 70 pips or 1.18% against the US Dollar. The decline began after the exchange rate tested a resistance cluster formed by the 50– and 200– hour SMAs at 0.5917.
The currency pair is currently testing a resistance cluster formed by the weekly pivot point and the combination of the 100– and 200– hour SMAs at 0.5926.
If the cluster holds, bears could continue to pressure the price lower within this session.
However, if the currency exchange rate breaks the resistance level, a surge towards the upper line of a descending channel pattern could be expected today.