The New Zealand Dollar declined by 2.64% against the Canadian Dollar since this week’s trading sessions. The NZD/CAD currency pair tested the 0.8750 level on March 25.
Currently, the exchange rate is trading near the lower boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, bearish traders are likely to continue to pressure the price lower during the following trading sessions.
However, if the channel pattern holds, the currency exchange rate is expected to make a brief retracement towards the 50–” period SMA at 0.8895 next week.