NZD/USD Analysis: two scenarios likely

Dukascopy Bank Team Dukascopy Bank SA

NZD/USD

The New Zealand Dollar declined by 61 pips or 0.95% in value against the US Dollar on Friday. The currency pair tested the lower boundary of a descending channel pattern at 0.6398 during Friday's trading session.

Given that the exchange rate is trading near the bottom border of the channel pattern, a breakout might occur within this session.

If the breakout occurs, a decline towards a support cluster formed by the weekly S1 and the monthly S1 at 0.6354 could be expected today.

However, if the descending channel pattern holds, the currency exchange rate could make a brief retracement towards the 0.6440 area within this session.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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