After reaching the 2016/2017 low of 1.4631 in February, EUR/NZD began trading in an ascending channel. The rate tested the upper boundary of this long-term pattern circa 1.72 late in October and has since edged lower down to 1.68.
As apparent on the chart, two other patterns are also active—a channel up and a descending wedge. Taking into account characteristics of these two patterns and technical indicators, it is likely that upside risks become dominant in the market, thus setting the Euro for a slight appreciation in the short term.
An immediate upside target could the weekly PP and the 200-hour SMA circa 1.6950 or the weekly R1 at 1.7132. As a result, the rate would retrace from a previously-breached channel line.
In the medium-term, however, it is still expected that the downward pressure could take the upper hand and push the rate closer to the 1.67 area.
As apparent on the chart, two other patterns are also active—a channel up and a descending wedge. Taking into account characteristics of these two patterns and technical indicators, it is likely that upside risks become dominant in the market, thus setting the Euro for a slight appreciation in the short term.
An immediate upside target could the weekly PP and the 200-hour SMA circa 1.6950 or the weekly R1 at 1.7132. As a result, the rate would retrace from a previously-breached channel line.
In the medium-term, however, it is still expected that the downward pressure could take the upper hand and push the rate closer to the 1.67 area.