Patterns: NZD/CAD, NZD/JPY
|NZD/CAD 4H: Buying signals
The New Zealand Dollar has surged by 143 pips or 1.62% against the Canadian Dollar since July 16. The currency pair breached the weekly resistance level at 0.8968 during yesterday's trading session.
Technical indicators suggest buying signals on all time-frame charts. Most likely, the exchange rate will continue to edge higher during next week's trading sessions. The potential target will be at the 0.9100 level.
However, a resistance cluster formed by the weekly R1 and the monthly R1 at 0.9031 could provide resistance for the currency exchange rate in the shorter term.
NZD/JPY 4H: Breakout could occur
The New Zealand Dollar has declined by 197 pips or 2.75% against the Japanese Yen since last week's trading sessions. The currency pair tested the lower boundary of an ascending channel pattern on July 30.
Currently, the exchange rate is trading near the bottom border of the ascending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 68.50 area could be expected during next week's trading sessions.
However, if the channel pattern holds, the currency exchange rate will most likely edge higher next week.
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