EUR/NZD 4H Chart: Descending Triangle

EUR/NZD 4H Chart: Descending Triangle

The common European currency is trading against the New Zealand Dollar in a descending triangle that is about to be broken.
The pattern started to form after a 1.84% appreciation of the Euro amid Mario Draghi speech.
From technical perspective, triangles are continuation pattern, which in this case mean that the rate has to make a breakout to the top.
This scenario is additionally supported by the fact that the lower support line is also protected by a combination of the monthly PP at 1.5586 and the 200-period SMA at 1.5580.
On the other hand, descending triangles, in particular, usually drive the currency pairs to the south.
The validity of this outcome is supported by the fact that the road upstairs is blocked by a combination of the 55- and 100-period SMAs and the weekly PP at 1.5689.