The New Zealand Dollar is trading against the Canadian Dollar simultaneously in the medium term ascending channel and short-term descending channel. The junior pattern is a representation of the pairs bounce off from the upper trend line of the dominant channel. It is likely that the pair will rebound from the bottom line of the senior channel near the 0.9370 level, which will finally confirm the formation of a symmetrical triangle. Consequently, the break out is likely to occur in the upward direction, following a strong pressure from the bottom edge of the dominant channel. Meanwhile, technical indicators mostly support this possibility.
| Level | Rationale |
Indicator |
4H | 1D | 1W | |||
| R4 | 0.9449 | 55-period SMA | Sell | Buy | Buy | |||
| R3 | 0.9436 | 100-period SMA | RSI (14) | Neutral | Neutral | Neutral | ||
| R2 | 0.9423 | Weekly PP | Stochastic (5; 3; 3) | Sell | Sell | Sell | ||
| R1 | 0.9415 | 20-period SMA | ADX (14) | Neutral | Neutral | Neutral | ||
| S1 | 0.9362 | Trend-line | CCI (14) | Neutral | Neutral | Sell | ||
| S2 | 0.9355/52 | Monthly PP: trend-line | AROON (14) | Buy | Buy | Buy | ||
| S3 | 0.9326/19 | Bollinger band; weekly S1 | Alligator (13; 8; 5) | Sell | Buy | Buy | ||
| S4 | 0.9227 | Weekly S2 | SAR (0.02; 0.2) | Sell | Buy | Buy | ||
| Aggregate | ↘ | ↗ | ↗ |