The 50– hour simple moving average has been guiding the New Zealand higher against the US Dollar since November 24. The currency pair made about 30 points move during Friday’s trading session.
Everything being equal, the exchange rate is likely to continue to trend higher during the following trading session. The potential target for bullish traders would be near the weekly resistance level at 0.7070.
However, if the currency exchange rate breaks the 50– hour SMA support level at 0.7016, a decline towards the weekly pivot point at 0.6983 could be expected within this session.