The New Zealand Dollar surged by 54 pips or 0.75% against the US Dollar on Monday. The NZD/USD currency pair breached the weekly R1 at 0.7237 during the Asian session on Tuesday.
Everything being equal, the exchange rate could continue to trend higher in an ascending channel pattern during the following trading session. Bullish traders are likely to target the weekly R2 at 0.7276 today.
However, the currency exchange rate could encounter a resistance level at 0.7250 in the shorter term.
