Patterns: CAD/JPY, AUD/NZD
|CAD/JPY 4H Chart: Pair likely to hits 83.50
The Canadian Dollar began to depreciate against the Japanese Yen after hitting the upper boundary of a dominant ascending channel pattern at 89.15 on October 3. During this two months of decline, the currency pair plunged by about 5.71%.
During the Asian session on Thursday, the exchange rate broke the dominant ascending channel at 84.75.
Given that a breakout had occurred, it is likely that the CAD/JPY currency exchange rate will continue to fall during the following week. The potential levels to look for will be at August 13 swing low of 83.50 and June 25 swing low of 81.99.
AUD/NZD 4H Chart: Pressure by 50– and 100-hour SMAs
The AUD/NZD currency pair has been tended south since the middle of August when it made a U-turn from the upper boundary a dominant descending channel pattern at 1.1150.
The general direction is expected to remain south within the scope of the following week. Two important levels to watch out for are the lower boundary of a four-month descending channel at 1.0410 and the monthly S2 at 1.0230.
Furthermore, technical indicators suggest that this decline might not happen immediately, as some upside pressure is likely to push the currency exchange rate towards a resistance level at 1.0630.
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