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.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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