GBP/NZD 4H Chart: Channel Up
|EUR/CHF 4H Chart: Falling Wedge
Comment: EUR/CHF has been forming a descending wedge since the beginning of 2016 on the daily chart, and is now making its way towards the bottom boundary of the pattern, but might be up for a demand as another falling wedge emerges on the four-hour chart. The pair has just slightly overstepped the upper trend-line of the pattern, meaning that the 200-period SMA might be a decent target now. Despite the breakout being a strong bullish signal for the wedge, we still see some risks from below that would come into play if the wedge turns into a channel down and leads the rate towards the senior bottom trend-line around 1.0580. However, a conforming strong surge above the current wedge would test the maturity of the senior pattern as well, meaning that bulls might take over in the long run.
GBP/NZD 4H Chart: Channel Up
Comment: GBP/NZD tested 1.6763 twice on the daily time-frame, sketching what could be seen as a double bottom formation with a neck-line at 1.7959. After a channel on the four-hour chart led the pair up towards the above area smoothly, this week's volatility in the Pound market gave a nudge to easily soar over the critical zone. The pair tapped and slightly overstepped the upper boundary of the channel, but respected the trend-line after all, setting the movement to the downside. In case the cross now targets the bottom bound of the channel, 1.8093 will come as the first downside target and might mess with the momentum a little bit. A surge is currently most likely to be cut around 1.8289, the upper bound of the channel.
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