Since July 1, the common European currency has declined by 1.03% against the New Zealand Dollar. The currency pair breached the 50– and 200– period SMAs during last week’s trading sessions.
Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a decline towards the 1.6650 area could be expected within this week’s trading sessions.
However, if the ascending channel pattern holds, bullish traders would pressure the currency exchange rate higher this week.
