Patterns: AUD/NZD, EUR/NZD

Dukascopy Bank Team Dukascopy Bank SA

AUD/NZD 4H Chart: Two scenarios likely

The Australian Dollar has continued to trade in a narrow descending channel pattern against the New Zealand Dollar. The currency pair declined by 125 basis points during last week's trading sessions.

The exchange rate is currently testing a resistance level formed by the 100– period simple moving average at 1.0408.

If the AUD/NZD pair breaks the resistance level, a surge towards the 1.0480 area could be expected within this week's sessions.

However, if the 100– period SMA holds, bears will continue to drive the currency exchange rate lower during the following trading sessions.

EUR/NZD 4H Chart: Could continue to edge lower

The common European currency has been trading in a narrow descending channel pattern against the New Zealand Dollar since the middle of October. The currency pair tested the monthly pivot point at 1.6808.

As for the near future, the EUR/NZD exchange rate will most likely continue to edge lower in the descending channel during the following trading sessions. The pair could target a support cluster formed by the weekly S3 and the monthly S1 at 1.6493.

However, the support lines formed by the 50– and 100– period SMAs at 1.6746 could provide support for the currency exchange rate and drive the price higher within this week's trading sessions.

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.