Patterns: EUR/NZD, AUD/NZD

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.

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Dukascopy Bank Team

Dukascopy Bank SA

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

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