NZD/CAD 4H Chart: Rebound from senior channel
Following a test of the 0.95 mark mid-March, the Kiwi reversed its sentiment against the Canadian Dollar and formed a new wave down. As a result, the pair formed an descending wedge.
The characteristics of this pattern suggest that a breakout should occur to the upside, thus pushing the rate back to the senior channel. Technical indicators are likewise bullish for next week.
The New Zealand Dollar still has to surpass the resistance of the 55– and 100-hour SMAs and the weekly PP to confirm this scenario. Upside potential in this case is the senior channel or the monthly R1 at 0.9450 and 0.9485, respectively.
In terms of support, a breakout of the monthly S1 and the 50.0% Fibonacci retracement at 0.9210 should be followed by a test of the monthly S2 and the 38.20% Fibo at 0.9072.
The characteristics of this pattern suggest that a breakout should occur to the upside, thus pushing the rate back to the senior channel. Technical indicators are likewise bullish for next week.
The New Zealand Dollar still has to surpass the resistance of the 55– and 100-hour SMAs and the weekly PP to confirm this scenario. Upside potential in this case is the senior channel or the monthly R1 at 0.9450 and 0.9485, respectively.
In terms of support, a breakout of the monthly S1 and the 50.0% Fibonacci retracement at 0.9210 should be followed by a test of the monthly S2 and the 38.20% Fibo at 0.9072.