Patterns: EUR/AUD, EUR/CAD, USD/TRY, USD/PLN
|EUR/AUD 4H Chart: Breakout could occur
The single European currency has declined by 2.48% against the Australian Dollar since the beginning of January. The currency pair tested the lower line of a descending channel pattern at 1.5600 during last week's trading sessions.
All things being equal, the EUR/AUD exchange rate could continue to edge lower during the following trading sessions. A breakout through the lower boundary of the channel pattern could occur.
However, if the descending channel pattern holds, bullish traders could attempt to pressure the currency exchange rate higher towards the 1.6000 level within this week's trading sessions.
EUR/CAD 4H Chart: Decline could continue
The common European currency has declined by 2.00% against the Canadian Dollar since January 4. The currency pair breached the lower line of a descending channel pattern at 1.5350 on January 15.
Everything being equal, the exchange rate could continue to decline during the following trading sessions. A breakout through the lower boundary of the descending channel pattern could occur.
However, if the channel pattern holds, the EUR/CAD currency exchange rate could make a brief retracement towards the 200– period simple moving average at 1.5571 during this week's trading sessions.
USD/TRY 4H Chart: Two scenarios likely
Since the middle of November, the USD/TRY currency pair has been trading downwards within a falling wedge pattern.
From a theoretical point of view, it is likely that the exchange rate could breach the predetermined pattern north in the nearest future. In this case the rate could target the psychological level at 8.5800.
Meanwhile, note that the currency pair is pressured by the 200-period moving average near 7.6340. Thus, some downside potential could continue to prevail in the market. The pair could decline to the Fibo 38.20% at 6.5993.
USD/PLN 4H Chart: Upside potential could prevail
Since the beginning of December, the USD/PLN exchange rate has been trading upwards within an ascending channel.
From a theoretical perspective, it is likely that the currency pair could continue to extend gains within the predetermined channel in the medium term.
In the meantime, note that the exchange rate could gain support from the 55-, 100– and 200-period moving averages in the 3.7100 area. Thus, a breakout north could occur, and the rate could try to exceed the Fibo 23.60% at 3.8540.
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