Patterns: GBP/NZD, EUR/NZD
|GBP/NZD 4H Chart: Potential bullish momentum
The British Pound has depreciated substantially against the New Zealand Dollar during the past month. This bearish sentiment has pressured the exchange rate down to a seven-week low level.
After piercing a support cluster formed by the combination of the weekly and the monthly PPs near the 1.9105 mark, bulls took control of the market, and as a result, the currency exchange rate broke out through the upper boundary of a descending channel pattern.
Given that the 55-, 100-, and 200-hour SMAs are located below the price, it is likely that this bullish momentum continues during the following trading sessions.
EUR/NZD 4H Chart: Trades with high volatility
Upside risks dominated the common European currency against the New Zealand Dollar since mid-June. During the past one month, the currency pair has increased its trading range by 5.46%.
The EUR/NZD exchange rate broke a junior descending channel during the end of trading session on Wednesday. Furthermore, the pair tested a significant resistance level set by the monthly pivot point at 1.7479.
Technical indicators on both the smaller and the larger time frames suggest that the bullish sentiment is likely to continue during the following trading sessions. In the meantime, it is expected that the rate makes a brief retracement down within this session.
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