Patterns: EUR/NZD, GBP/CAD

EUR/NZD 4H Chart: Stranded between SMAs

The large-scale situation for the common European currency against the New Zealand Dollar has not changed. However, there has been a new development, as the pair has formed a junior pattern south.

This new junior pattern has guided the currency pair down for a breakout of the lower boundary of the dominant channel at 1.6864.

Although the pair is currently stranded between SMAs, but two scenarios are possible. First, the EUR/NZD pair could move past the support of the 200– hour SMA. This decline might be stopped by a support cluster near 1.6805. Second, the exchange rate might reverse to test the upper boundary of the junior pattern.

EURNZD

 

GBP/CAD 4H Chart: Breach cluster

The Pound Sterling has been trading in a long-term channel up against the Canadian Dollar since September, 2017. During this rally, Sterling reached a new high at 1.7659.

The currency exchange rate has breached a resistance cluster set by the monthly pivot points and the 55– and 100– hour SMAs, as it can be observed in the chart.

The GBP/CAD pair is likely to continue moving north to re-test the high at 1.7659. Traders should look for opportunities to trade long, as technical indicators suggest the rally could continue.

GBPCAD

 

 

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.