The downside risk continues to push the New Zealand Dollar lower against the US Dollar. By the end of last week trading sessions, the NZD/USD exchange rate has reached a six-month low level.
After hitting the upper boundary of a dominant descending channel, the Kiwi began to depreciate against the Greenback. Also, the 200– hour simple moving average pressured the pair further south.
The bearish sentiment might be in play for the next trading session. However, a brief retracement north is expected within this day. Meanwhile, on the daily time-frame, technical indicators flash strong sell signals.
After hitting the upper boundary of a dominant descending channel, the Kiwi began to depreciate against the Greenback. Also, the 200– hour simple moving average pressured the pair further south.
The bearish sentiment might be in play for the next trading session. However, a brief retracement north is expected within this day. Meanwhile, on the daily time-frame, technical indicators flash strong sell signals.
It was noticed that the pair might be trading in a long term descending channel pattern. The upper trend line of that channel caused the decline. On Wednesday the currency rate managed to pass various support levels in the zone from 0.6900 to 0.6920. In addition, the lower trend line of the medium term ascending pattern was located in the cluster.
Due to all these factors combined, one can conclude that the rate is set to decline down to the 0.6859 mark, where the weekly S1 was located at.