Patterns: EUR/NZD, AUD/NZD
|EUR/NZD 4H Chart: Falling wedge pattern in sight
The EUR/NZD currency pair has been trading downwards within a falling wedge pattern since the beginning of August.
From a theoretical point of view, it is likely that the exchange rate could continue to decline within the given pattern within the following trading sessions. Then, a breakout north could occur.
In the meantime, note that the currency pair is pressured by the 100– and 200-period moving averages near 1.1780. Thus, some downside potential could continue to prevail in the market in the medium term.
AUD/NZD 4H Chart: Two scenarios likely
Since the end of August, the AUD/NZD exchange rate has been declining, guided by a descending trend line.
From a theoretical perspective, it is likely that some downside potential could continue to prevail in the market, and the currency pair could target the Fibo 38.20% located at 1.0656.
On the other hand, it is likely that the exchange rate could gain support from the 55– and 200-period SMAs near 1.0880 and extend gains. In this case the rate would have to exceed the 1.1050 level.
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