Dukascopy Bank Team
Dukascopy Bank SA
EUR/NZD 4H Chart: Falling wedge pattern in sight
The EUR/NZD currency pair has been trading downwards within a falling wedge pattern since the beginning of August.
From a theoretical point of view, it is likely that the exchange rate could continue to decline within the given pattern within the following trading sessions. Then, a breakout north could occur.
In the meantime, note that the currency pair is pressured by the 100– and 200-period moving averages near 1.1780. Thus, some downside potential could continue to prevail in the market in the medium term.
AUD/NZD 4H Chart: Two scenarios likely
Since the end of August, the AUD/NZD exchange rate has been declining, guided by a descending trend line.
From a theoretical perspective, it is likely that some downside potential could continue to prevail in the market, and the currency pair could target the Fibo 38.20% located at 1.0656.
On the other hand, it is likely that the exchange rate could gain support from the 55– and 200-period SMAs near 1.0880 and extend gains. In this case the rate would have to exceed the 1.1050 level.
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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