Patterns: EUR/CAD, EUR/AUD
|EUR/CAD 4H Chart: Buying signals
The common European currency has surged by 193 pips or 1.25% against the Canadian Dollar since September 3. The currency pair tested the 200– period simple moving average at 1.5636 on September 10.
The exchange rate is currently trading near the upper boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards a resistance cluster at the 1.5800 level could occur within this week's trading sessions.
However, if the channel pattern holds, bears are likely to pressure the currency exchange rate lower this week.
EUR/AUD 4H Chart: Two scenarios likely
The EUR/JPY currency pair traded between the range of 1.6200/1.6346 during last week's trading session. The 100– period SMA provided resistance at 1.6346, while the 50– hour simple moving average provided support for the exchange rate at 1.6224.
As for the near future, the Australian Dollar could continue to strengthen against the common European currency. The potential target for the pair would be near the 1.6100 level.
However, the weekly support level at 1.6171 could provide resistance for the currency exchange rate within this week's trading sessions.
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