Patterns: EUR/NZD, GBP/CAD
|EUR/NZD 4H Chart: Stranded between SMAs
The large-scale situation for the common European currency against the New Zealand Dollar has not changed. However, there has been a new development, as the pair has formed a junior pattern south.
This new junior pattern has guided the currency pair down for a breakout of the lower boundary of the dominant channel at 1.6864.
Although the pair is currently stranded between SMAs, but two scenarios are possible. First, the EUR/NZD pair could move past the support of the 200– hour SMA. This decline might be stopped by a support cluster near 1.6805. Second, the exchange rate might reverse to test the upper boundary of the junior pattern.
GBP/CAD 4H Chart: Breach cluster
The Pound Sterling has been trading in a long-term channel up against the Canadian Dollar since September, 2017. During this rally, Sterling reached a new high at 1.7659.
The currency exchange rate has breached a resistance cluster set by the monthly pivot points and the 55– and 100– hour SMAs, as it can be observed in the chart.
The GBP/CAD pair is likely to continue moving north to re-test the high at 1.7659. Traders should look for opportunities to trade long, as technical indicators suggest the rally could continue.
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