The New Zealand Dollar jumped by 73 basis points or 1.03% against the US Dollar on Wednesday. The currency pair breached the upper line of a descending channel pattern on Thursday morning.
Given that a breakout has occurred, the exchange rate could continue to edge up during the following trading session. The possible target for the NZD/USD pair would be near the 0.7240 area.
However, a resistance level at 0.7209 could provide a barrier for the currency exchange rate within Thursday’s session.