NZD/USD fluctuates around at 0.7363

A result of the previous trading session showed that the currency pair has entered in a small rectangle pattern. As a continuation figure it should allow the rate to continue to slide downwards. If such scenario materializes, this might mean that the above formation was a part of a larger flag pattern. Thus, the subsequent fall might amount to 54 basis points and stop only at the weekly S2 at 0.7310. A number of technical indicators support this assumption, sending signals the rate is substantially overbought. On the other hand, four green candles in a row reflect a clear intention of the pair to get back into the preceding medium-term ascending channel. This advance, by the way, would also be in line with characteristics of the junior descending channel.