NZD/CAD 4H Chart: Channel Down

A 43-bar long channel down was formed by NZD/CAD. After hitting a six-year high at 0.9286 on January 23 the pair refused to move any higher, and it seems the bullish movement is running out of steam as each new high is lower than the previous one. Moreover, traders do not believe this is just a correction, as 71% of Dukascopy traders are holding short positions on the pair. Therefore, a move to the pattern's resistance line will be interpreted as usual– as a ‘sell' signals. In case the pair dips below 0.9084, the next key level will be located only a 200-period SMA at 0.8982. On the contrary, aggregate technical indicators are sending ‘buy' signals or they are neutral, suggesting there is a possibility of appreciation.