EUR/AUD two scenarios likely
Since October 13, the common European currency has declined by 1.69% against the Australian Dollar. The 50– period simple moving average pressured the currency pair lower during last week's trading sessions.
Currently, the exchange rate is trading near the lower boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 1.5200 level could be expected during the following trading sessions.
However, if the channel pattern holds, the currency exchange rate might make a brief retracement towards the 1.5750 area this week.
EUR/CAD consolidates above 1.4300
The EUR/CAD currency pair has been trading between the range of 1.4450/1.4300 levels since October 13.
Technical indicators suggest buying signals on the 4H time-frame charts. Most likely, the Eurozone single currency could strengthen against the Canadian Dollar during the following trading sessions. The potential target for buyers could be near the 1.4600 level.
However, the currency exchange rate may encounter resistance at 1.4439 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.