Patterns: EUR/AUD, EUR/CAD, USD/SGD, ZAR/JPY
|EUR/AUD 4H Chart: Buying signals
The common European currency has surged by 2.44% against the Australian Dollar since mid-July. The currency pair is currently trading in narrow ascending channel pattern.
Technical indicators suggest buying signals on the 4-hour and daily time-frame charts. Most likely, the exchange rate will continue to edge higher during the following trading sessions.
However, the weekly resistance level at 1.6574 could provide a barrier for the currency exchange rate in the shorter term.
EUR/CAD 4H: Brief retracement likely
The Eurozone single currency has surged by 3.84% against the Canadian Dollar since July 21. The currency pair tested the upper boundary of an ascending channel pattern at 1.5974 during Friday's trading session.
All things being equal, the EUR/CAD exchange rate could continue to trend bullish. A breakout through the upper line of the ascending channel pattern could occur within this week trading sessions.
However, the currency exchange rate is expected to make a brief pullback towards the monthly support level at 1.5615 during the following sessions.
USD/ZAR 4H Chart: Two scenarios likely
The USD/ZAR currency pair has been trading sideways between the Fibos 38.00% and 23.60%, located at 16.26 and 17.37 respectively.
If the given levels hold, it is likely that the exchange rate could continue to consolidate in the medium term.
Meanwhile, note that the rate could gain support from the 55-, 100– and 200-period moving averages. Thus, some upside potential could prevail in the market, and the pair could target the psychological level at 18.50.
ZAR/JPY 4H Chart: Bears could prevail
The ZAR/JPY exchange rate has been consolidating between the 6.1170 and 6.5480 levels since the beginning of June.
From a theoretical perspective, it is likely that the currency pair could continue to consolidate between the given levels in the medium terms.
Meanwhile, note that the pair could be pushed down by the 55-, 100– and 200-period moving averages. In this case the rate could target the psychological level at 5.60.
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