Patterns: NZD/CAD, NZD/JPY
|NZD/CAD 4H Chart: Remains near 0.8600
The New Zealand Dollar has been trading downwards against the Canadian Dollar since December 30. This movement has been bounded within a junior descending channel pattern.
Given that the weekly S2 and the monthly S1 at 0.8587 are providing support for the exchange rate, it is likely that some upside potential could prevail in the market during the following trading sessions.
However, if the currency exchange rate breaks the support cluster, the NZD/CAD could continue to trade within the given trend within next week's trading sessions.
NZD/JPY 4H Chart: Breakout could occur
The New Zealand Dollar has been depreciating against the Japanese Yen since the end of December after the NZD/JPY exchange rate reversed from the upper boundary of an ascending channel pattern at 73.46.
Currently, the currency pair is trading near the bottom border of the channel pattern at 70.88. From a theoretical perspective, a breakout could occur within this session.
However, if the channel pattern holds, some upside potential will likely prevail in the market within next week's trading sessions. The possible upside target will be at the 72.50 area.
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