Patterns: EUR/CZK, EUR/TRY
|EUR/CZK 1H Chart: Bears likely to prevail
The Euro has been depreciating against the Czech Koruna since the end of December. This movement has been bounded within the descending channel.
Note that the EUR/CZK currency pair is pressured by the 55-, 100– and 200-hour moving averages, currently located in the 25.14/25.23 range. Thus, it is likely that some downside potential could prevail in the market. In this case the pair could decline below the psychological level at 25.00.
It is unlikely that bulls could prevail in the market, and the Euro could exceed the Fibonacci 62.40% retracement at 25.56 against the Czech Koruna.
EUR/TRY 1H Chart: Short-term decline expected
The EUR/TRY exchange rate continued to trade within the rising wedge pattern (4H time-frame chart). As apparent on the chart, the rate reversed south from the upper pattern line at the beginning of January.
From a theoretical perspective, it is likely that some downside potential could prevail in the market, as the currency pair should target the lower pattern line located in the 6.4500 area.
If the given pattern holds, it is likely that a reversal north could follow. Otherwise, a breakout south could occur. In this case the exchange rate could gain support of the Fibonacci 61.80% retracement at 6.3791.
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