© Dukascopy Bank SA
Once NZD/CAD stabilised near 0.92, following a prolonged sell-off, the currency pair started to trade between two parallel upward-sloping trend-lines. Given that most of the technical studies are giving ‘buy' signals, especially on the longer-term time-frames, and the lower edge of the channel remaining intact, the New Zealand Dollar is likely to carry on outperforming its Canadian counterpart in the future.
In the next few days NZD/CAD is expected to bounce off 0.9443, pierce through the resistance at 0.9483 (daily R1 and Jun 18 high) and eventually reach the upper boundary of the pattern at 0.9556, which is currently reinforced by the daily R3 level.
© Dukascopy Bank SA