In today’s analysis, let’s turn our attention to a less commonly traded pair – NZD/CAD – which has been climbing sharply over the past few days.
The recent move higher has been technically driven, and on the chart, we can see a well-formed cup and handle pattern marked in yellow. This formation first defended the green horizontal support, acting as a solid base for the latest rally. Now, price action has broken above the red neckline of the pattern, which is a strong bullish signal in itself.
However, there’s still one final technical hurdle – the black downtrend line. Price is testing it now, but a daily close above this trendline would act as a powerful confirmation of the buy signal generated by the cup and handle breakout. If that confirmation comes, the technical target sits significantly higher, opening the door to an extended bullish phase.
For now, the sentiment remains positive, but the breakout above the black downtrend line will be the deciding factor for momentum traders looking to ride this move further.