Forex: NZD/USD breaches 200-hour SMA

Upside risks dominated the NZD/USD exchange rate on Friday. The New Zealand Dollar appreciated by 65 base points against the US Dollar during the end of Friday’s session.

Monday’s trading session begins with a bullish sentiment. By the middle of the session, a breakout through the upper boundary of a two-week descending channel at 0.6529 has occurred.

Given that the currency exchange rate has breached the 200-hour simple moving average at 0.6549, the next target for the pair will be near a resistance cluster formed by the monthly and the weekly PPs at 0.6692.

However, a brief pullback towards the 100-hour SMA at 0.6529 could is likely within this session.