In the aftermath of the break out to the downside by the NZD/USD pair, a new junior descending pattern was discovered on Wednesday. Namely, there exists a pattern, which has guided the currency exchange rate since the bounce off from resistance that occurred at the start of Tuesday’s trading session.
However, judging by the range of the new pattern and the previous, it can be deducted that these two pattern represent junior movements in a larger scale pattern. Although, the exact trend lines of the larger pattern are still not clear.
In regards to the short term future, the rate is set to surge up to the 0.6820 level, where it will meet the junior patterns resistance together with the 100-hour SMA.
However, judging by the range of the new pattern and the previous, it can be deducted that these two pattern represent junior movements in a larger scale pattern. Although, the exact trend lines of the larger pattern are still not clear.
In regards to the short term future, the rate is set to surge up to the 0.6820 level, where it will meet the junior patterns resistance together with the 100-hour SMA.
By Thursday’s trading session, the currency exchange rate fell below the 0.6780 mark and was gradually moving down toward the lower boundary of a downtrend channel. However, a correction north is likely within this session.
Everything being equal, the New Zealand Dollar is likely to decline further south against the US Dollar during the following trading session. In addition, technical indicators are in favour of bears to grow stronger.