© Dukascopy Bank SA
There is a bullish channel emerging on the hourly chart of EUR/NZD. However, even though it looks as if the currency pair turned around after hitting a strong support level currently represented by the daily S2 level, right now the price is facing the 200-hour SMA, which may not let the rally to develop any further, as was the case on January 10.
Respectively, in order to confirm its bullish intentions the Euro has to overcome a cluster of resistances circa 1.6416, then we will recognise the January 10 high at 1.6580 as the next target. Otherwise this up-trend will be considered to be a bullish correction of the move started at the end of last year's December.
© Dukascopy Bank SA