AUD/NZD 1H Chart: Aussie breaches wedge
During the last two months, the Australian Dollar has depreciated substantially against the New Zealand Dollar in a channel down pattern. This pair has provided several confirmations on both sides, the latest of which occurred this week.
Meanwhile, an ascending wedge can also be spotted on the chart. This pattern, however, was breached early in this session when the rate overcame the support of the 55– and 100-hour SMAs circa 1.0993.
From theoretical point of view, both patterns should guide the pair lower. However, given that today is the last trading day of 2017, no massive changes to the pair’s price are expected to happen. It might fail to breach the 200-hour SMA and the weekly PP at 1.0970 and surrender under the resistance of the aforementioned shorter-term SMAs, thus entering a minor period of consolidation.
In case the channel is breached, a surge is likely to follow.
Meanwhile, an ascending wedge can also be spotted on the chart. This pattern, however, was breached early in this session when the rate overcame the support of the 55– and 100-hour SMAs circa 1.0993.
From theoretical point of view, both patterns should guide the pair lower. However, given that today is the last trading day of 2017, no massive changes to the pair’s price are expected to happen. It might fail to breach the 200-hour SMA and the weekly PP at 1.0970 and surrender under the resistance of the aforementioned shorter-term SMAs, thus entering a minor period of consolidation.
In case the channel is breached, a surge is likely to follow.