Patterns: AUD/NZD, EUR/SGD
|AUD/NZD 1H Chart: Bullish momentum to continue
AUD/NZD has been moving in a long-term channel down valid since October, 2017. During the past few weeks, the pair was gradually moving lower down to the bottom boundary of this senior pattern.
The market sentiment changed rapidly when the pair reached a long-term trend-line near 1.05, as it reversed from the channel line and accelerated in a steep upward movement.
The Australian Dollar is currently supported by the 100-hour SMA and a junior channel circa 1.0630. It seems that the given currency might continue appreciating this week with the expected upside target being the senior channel and the monthly R1 near 1.0760.
The rate is likely to edge lower for a brief period of time during the first part of the week in response to slight bearish pressure. This fall, however, should not be significant, thus setting the 200-hour SMA and the weekly S1 near 1.0570 as a possible target.
EUR/SGD 1H Chart: Pair targets senior pattern
The Euro has been weakening against the Singapore Dollar since early February—a movement which has been constrained in a descending channel. As apparent on the chart, the pair failed to reach its upper boundary last week, as it was hindered near the 1.6240 area for several sessions.
On Monday, the Euro was testing the 1.62 mark which is reinforced by the 100– and 200-hour SMAs and the weekly PP.
It is likely that this strong resistance pressures the rate lower within the following two sessions. Nevertheless, the general up-trend is still expected to prevail. The nearest resistance is set by the senior channel line and the weekly R1 at 1.6240. In case of an upside breakout, this surge should continue up until the monthly R1 at 1.6330.
Meanwhile, a move below 1.6150 could mark a new wave down, thus guiding the pair towards the 1.5950 territory.
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