The EUR/NZD currency pair has been trading downwards within a falling wedge pattern since the beginning of August.
From a theoretical point of view, it is likely that the exchange rate could continue to decline within the given pattern within the following trading sessions. Then, a breakout north could occur.
In the meantime, note that the currency pair is pressured by the 100– and 200-period moving averages near 1.1780. Thus, some downside potential could continue to prevail in the market in the medium term.
