EUR/NZD 1H Chart: Upside potential
The EUR/NZD currency pair reached 2017/2018 high at the 1.7806 mark during Tuesday's morning hours.
As apparent on the chart, the pair has been trading in ascendig channel since the end of August. Currently, the exchange rate is trading near the uppper boundary of given channel. Technical indicators on the 4H and 1W time-frames are in favor of the bullish scenario. Given these facts, it is expected that a breakout could occur in the nearest future an the pair could aim for the weekly R3 at 1.800.
Two important levels to look our for are the weekly and monthly R2 located at 1.7868 and 1.7895, accordingly.
As apparent on the chart, the pair has been trading in ascendig channel since the end of August. Currently, the exchange rate is trading near the uppper boundary of given channel. Technical indicators on the 4H and 1W time-frames are in favor of the bullish scenario. Given these facts, it is expected that a breakout could occur in the nearest future an the pair could aim for the weekly R3 at 1.800.
Two important levels to look our for are the weekly and monthly R2 located at 1.7868 and 1.7895, accordingly.
Comment:
The single European currency began appreciating against the New Zealand Dollar mid-June when it reversed from the lower boundary of a long-term ascending channel at 1.6600.
Currently, the exchange rate is trading in a two-week descending channel. This pattern can be considered to be a brief retracement down. The pair tested the bottom border of the long-term ascending channel pattern at 1.7550 during the first part of Thursday’s session.
A breakout is likely to occur within this session. If this breakout occurs, the currency exchange rate will aim at the weekly S3 at 1.7465 during the following trading sessions.
Currently, the exchange rate is trading in a two-week descending channel. This pattern can be considered to be a brief retracement down. The pair tested the bottom border of the long-term ascending channel pattern at 1.7550 during the first part of Thursday’s session.
A breakout is likely to occur within this session. If this breakout occurs, the currency exchange rate will aim at the weekly S3 at 1.7465 during the following trading sessions.
Comment:
The common European currency has lost about 3.20% of its values against the New Zealand Dollar since the first week of October. This decline started after the currency pair made a U-turn south from the upper boundary of a long-term ascending channel at 1.7933 on October 8.
The exchange rate is trading near a resistance cluster formed by the weekly PP and the 50-hour simple moving average during the morning hours of Thursday’s trading session.
If this resistance level holds, the currency exchange rate could aim at the bottom border of the long-term channel at 1.7350.
Furthermore, technical indicators flash a bearish signal on the daily time frame.
The exchange rate is trading near a resistance cluster formed by the weekly PP and the 50-hour simple moving average during the morning hours of Thursday’s trading session.
If this resistance level holds, the currency exchange rate could aim at the bottom border of the long-term channel at 1.7350.
Furthermore, technical indicators flash a bearish signal on the daily time frame.
Presently, the exchange rate is trading near the lower boundary of the three months ascending channel at 1.7592. From a technical point of view, a support cluster formed by the combination of the weekly pivot point and the 200-hour SMA at 1.7592 could provide significant support for the pair to reverse north and target a resistance level set by the weekly S1 and the 100-hour SMA at 1.7662.
However, if this support line is unable to hold, a breakout through the bottom border of the channel pattern is a possibility within this session.