The Australian Dollar is gaining value against the New Zealand Dollar in a few days long ascending channel, which started to form in result of an extensive jump of the exchange rate from the monthly R1 at 1.0868.
Given the narrow structure of the pattern, it is not expected to guide movement of the pair for long. Most probably, the 55-hour SMA, which moves along the channel’s southern boundary, will help the rate to surge to the weekly R1 at 1.1017. Afterwards, the breakout most likely is going to happen.
On the other hand, the pattern might cease to exist even earlier because of some fundamental events, such as publication of information on the Australian Private Capital Expenditure on Thursday.