Patterns: AUD/NZD, EUR/NZD
|AUD/NZD 4H Chart: Two scenarios likely
The Australian Dollar has continued to trade in a narrow descending channel pattern against the New Zealand Dollar. The currency pair declined by 125 basis points during last week's trading sessions.
The exchange rate is currently testing a resistance level formed by the 100– period simple moving average at 1.0408.
If the AUD/NZD pair breaks the resistance level, a surge towards the 1.0480 area could be expected within this week's sessions.
However, if the 100– period SMA holds, bears will continue to drive the currency exchange rate lower during the following trading sessions.
EUR/NZD 4H Chart: Could continue to edge lower
The common European currency has been trading in a narrow descending channel pattern against the New Zealand Dollar since the middle of October. The currency pair tested the monthly pivot point at 1.6808.
As for the near future, the EUR/NZD exchange rate will most likely continue to edge lower in the descending channel during the following trading sessions. The pair could target a support cluster formed by the weekly S3 and the monthly S1 at 1.6493.
However, the support lines formed by the 50– and 100– period SMAs at 1.6746 could provide support for the currency exchange rate and drive the price higher within this week's trading sessions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.