Patterns: EUR/TRY, EUR/CZK

EUR/TRY 4H Chart: Rising wedge pattern in sight

The EUR/TRY currency pair has been appreciating gradually within a rising wedge pattern since the beginning of August.

From a theoretical point of view, it is likely that a breakout south could occur in the nearest future, and the exchange rate could go downwards. In this case the rate could gain support from the 200-period SMA and the monthly S1 in the 8.4000 area.

In the meantime, note that the currency pair is supported by the 55– and 100-period SMAs in the 8.7100 area. Thus, it is likely that bulls could continue to prevail in the market.

EUR/CZK 4H Chart: Short-term decline expected

The EUR/CZK exchange rate continued to trade within a falling wedge pattern.

From a theoretical perspective, it is likely that the currency pair could continue to trade within the given pattern in the medium term. Note that the pair could face the support level formed by the Fibo 61.80% at 26.00.

Meanwhile, note that the exchange rate is supported by the 55– and 100-period moving averages in the 26.20 area. Thus, a breakout north could occur, and the rate could re-test the resistance level—the Fibo 38.20% at 26.77.