Patterns: AUD/NZD, EUR/NZD, GBP/NZD, GBP/CHF
|AUD/NZD 4H Chart: Tests monthly resistance level
The Australian Dollar edged higher by 1.22% against the New Zealand Dollar last week. The currency pair tested the upper boundary of an ascending channel pattern at 1.0858 on August 5.
Currently, the AUD/USD exchange rate is testing the monthly resistance level at 1.0858.
If the monthly R1 holds, a decline towards the bottom line of the ascending channel pattern could be expected within this week's sessions.
However, if the currency exchange rate breaks the monthly resistance level, bullish traders are likely to pressure the price higher during the following trading sessions.
EUR/NZD 4H Chart: Breakout could occur
The common European currency has surged by 3.45% against the New Zealand Dollar since July 21. The currency pair breached the 1.7900 mark during last week's trading sessions.
All things being equal, the exchange rate could continue to edge higher. A breakout through the upper boundary of an ascending channel pattern could occur during the following trading sessions.
However, if the ascending channel pattern holds bearish traders are likely to pressure the currency exchange rate lower within this week's sessions.
GBP/NZD 4H Chart: Long-term channel in sight
The GBP/NZD currency pair has been trading upwards within a long-term ascending channel. Currently, the pair is testing the upper channel line circa 1.9830.
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future, and the exchange rate could continue to decline within the given channel in the medium term. A possible downside target is 1.9000 level.
Meanwhile, note that the currency pair is supported by the 55-hour moving average near 1.9670. Thus, it is likely that a breakout north could occur, and the pair could raise the Fibo 23.60% at 2.0308.
GBP/CHF 4H Chart: Bulls could prevail
The GBP/CHF exchange rate has been appreciating against an ascending channel since the beginning of July.
From a theoretical perspective, it is likely that some upside potential could prevail in the market, and the currency pair could continue to trade within the given pattern in the medium term. In this case the pair could target the Fibo 38.20% at 1.2101.
In the meantime, it is unlikely that bears could prevail in the market, and the exchange rate could decline below the monthly S2 at 1.1590.
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