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.
