EUR/NZD 1H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Following a double top formation, EUR/NZD broke the neckline just to dive into a descending channel and confirm the bearish themes once again. The pair touched the upper trend-line of the pattern at 1.5252 just moments ago, suggesting that a dip towards the bottom downtrend is to come. 1.5230 will be the first level trying to distract the movement with 1.5214/19 up next. One more obstacle will be posed at 1.5188 before 1.5151, the bottom trend-line, is tested. However, currently floating above the channel line, the pair is threatening to close above, which would induce a rally towards the 200-period SMA at 1.5274 or 1.5289 to begin a rebound towards the broken trend-line. We do still believe that the downtrend remains strong with the death cross formation of 55 and 200-period SMAs just proving the point.
© Dukascopy Bank SA
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