NZD/USD 1H Chart: Channel Up

The Kiwi has been correcting lower since the middle of Thursday. The US disappointing NFP report added bullish impetus to the New Zealand Dollar, but a recovery may not be long-lasting. In the nearest future NZD/USD must violate the 55-hour SMA, in order to confirm bearish expectations for the next couple of days. While bears are aiming at the lower trend-line, they will also have to cross the 100-hour SMA and daily S1 at 0.6375. Despite market sentiment being supportive for the negative scenario in 70% of all cases, we expect a renewal of the up-trend around the pattern's lower edge. This line is largely supported by the weekly pivot point, daily S2 and 200-hour moving average line.