NZD/USD Breakout Could Occur

The New Zealand Dollar declined by 74 pips or 1.01% against the US Dollar on Wednesday. The currency pair breached the lower boundary of an ascending channel pattern during Wednesday’s session.

Given that the NZD/USD exchange rate is currently trading near the lower line of an ascending channel pattern, a breakout could occur during the following trading session.

However, if the channel pattern holds, a surge towards the weekly R1 at 0.7388 could be expected today.