Patterns: EUR/NZD, AUD/NZD
|EUR/NZD 4H chart: Decline likely to continue
The common European currency declined by 1.56% against the New Zealand Dollar during last week's trading sessions. The currency pair breached the 50– and 200– period SMAs last week.
All things being equal, the exchange rate could continue to edge lower during the following trading sessions. The potential target for sellers will be near the weekly S2 at 1.6453.
However, the weekly support level at 1.6575 could provide support for the EUR/NZD currency exchange rate within this week's trading sessions.
AUD/NZD 4H chart: Two scenarios likely
The Australian Dollar declined by 101 pips or 0.93% against the New Zealand Dollar last week. The 200– period simple moving average provided resistance for the currency pair during last week's trading sessions.
Technical indicators suggest buying signals on the weekly time-frame chart. Most likely, the exchange rate could edge higher during this week's trading sessions. A breakout through the upper line of a descending channel pattern could occur.
However, if the channel pattern holds, the currency exchange rate could take a dive this week.
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