The New Zealand Dollar has surged by 84 pips or 1.15% against the US Dollar since yesterday’s trading session. The currency pair tested the upper line of an ascending channel pattern during the London session on Wednesday.
Given that the exchange rate is currently trading near the upper border of the channel pattern, a breakout could occur within this session.
If the breakout occurs, a surge towards the 0.7450 level could be expected during the following trading session.
However, if the channel pattern holds, bears could pressure the currency exchange rate lower today.