Patterns: EUR/CAD, EUR/AUD
|EUR/CAD 4H Chart: Decline insight
The common European currency has appreciated about 1.10% in values against the Canadian Dollar since February 4. The currency pair tested the upper boundary of a descending channel pattern at 1.5120.
As for the near future, it is likely that the exchange rate continues its movement in the descending channel pattern. The potential downside target will be near the bottom border of a dominant ascending channel at 1.4945.
If the support level formed by the lower boundary of the dominant channel holds, a bullish sentiment could be introduced in the shorter term.
EUR/AUD 4H Chart: Stranded between SMAs
The single European currency has appreciated about 2.06% against the Australian Dollar since February 4. This rally was stopped by a resistance level formed by the weekly PP at 1.6047.
The exchange rate was stranded between SMAs during the morning hours of Monday's trading session. The 200-hour simple moving average was providing resistance for the pair at 1.5996, while the 50– and 100-hour SMAs was providing support.
Technical indicators flash bullish signals on the 4(H) time-frame. Therefore, it is likely that the currency exchange rate will surpass the 200-hour SMA during the following trading sessions.
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