EUR/NZD 1H Chart: Channel Down

The rally started on Feb 28 failed to surpass the resistance represented by the 200-hour SMA. As a result, EUR/NZD started to decline, but at the same time was respecting two parallel downward-sloping trend-lines.

Accordingly, as implied by the channel down pattern, the currency pair is unlikely to rise beyond the daily pivot point at 1.6394. Instead we expect the single European currency to preserve the bearish momentum for the time being. However, the price may find it difficult to move lower after reaching 1.63, as turned out to be the case late February. Meanwhile, the sentiment is strongly bullish—62% of open positions are long.