Patterns: NZD/CAD, NZD/JPY
|NZD/CAD 4H Chart: Breakout occurs
The New Zealand Dollar has declined by 2.40% against the Canadian Dollar since last week's trading sessions. A breakout occurred through the lower boundary of an ascending channel pattern on September 22.
Given that a breakout has occurred, bearish traders could continue to pressure the exchange rate lower during the following trading sessions. The potential target for the NZD/CAD pair would be at the 0.8601 level.
However, the currency exchange rate could make a brief retracement towards the 50– period simple moving average at 0.8844 next week.
NZD/JPY 4H Chart: Decline could occur
The New Zealand Dollar has declined by 4.52% against the Japanese Yen since the beginning of September. The currency pair breached the 50-, 100– and 200– period SMAs during this period.
Technical indicators suggest selling signals on the daily time-frame chart. Therefore, bears are likely to continue to dominate the exchange rate during the following trading sessions.
However, the NZD/JPY currency exchange rate could make a brief pullback towards the 70.00 level in the nearest future.
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