Patterns: NZD/CAD, NZD/JPY, USD/MXN, USD/ILS

Dukascopy Bank Team Dukascopy Bank SA

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.

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.