Patterns: NZD/CAD, NZD/JPY, USD/MXN, USD/ILS
|NZD/CAD 4h chart: Bullish momentum likely to continue
The New Zealand Dollar has surged by 261 pips or 3.07% against the Canadian Dollar since June 1. The currency pair tested the 0.8750 area during the Asian session on Friday.
Technical indicators demonstrate buying signals on both the smaller and the larger time-frame charts. Therefore, the exchange trade would continue to trend bullish during the following trading sessions.
However, the upper boundary of an ascending channel pattern could provide resistance for the currency exchange rate during the following trading sessions.
NZD/JPY 4H: Targets at 72.00
The New Zealand Dollar has been trading in an ascending channel pattern against the Japanese Yen since May 14. The currency pair has surged by 385 pips or 5.79% since this week's trading sessions.
As for the near future, the exchange rate could continue to edge higher. Buyers could target the 72.00 level during the following trading sessions.
However, the NZD/JPY currency exchange rate could reverse from the current price level at 70.65 and aim for the lower boundary of the ascending channel pattern during next week's trading sessions.
USD/MXN 1H chart: Bears could continue to prevail
The USD/MXN currency pair has been trading downwards since the middle of May after it failed to exceed the psychological level at 25.00.
Note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages in the 21.78/22.05 range. Thus, some downside potential could prevail in the market. In this case the rate could gain support from the monthly S3 at 18.28.
Meanwhile, note that the currency pair would have to surpass the monthly S1 and S2, located at 21.16 and 20.14 respectively. Thus, a reversal north could occur, and the pair could re-test the 25.00 level.
USD/ILS 1H chart: Falling wedge pattern in sight
The USD/ILS exchange rate has been trading within a falling wedge pattern since the beginning of May.
From a theoretical perspective, it is likely that the currency pair could continue to trade within the given pattern until the end of June. Then, a breakout north could occur, and the pair could jump to the psychological level at 3.6500.
Meanwhile, note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages. Thus, some a breakout south could occur in the nearest future, and the rate could re-test the 2020 low at 3.4000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.