EUR/NZD 1H Chart: Channel Up

There is a bullish channel emerging on the hourly chart of EUR/NZD. However, while the lower trend-line of the potential pattern is fairly reliable due to several confirmations, there are still questions regarding the upper boundary of the corridor.

Meanwhile, there is a high probability the Euro is going to appreciate in the short term. Firstly, because of the majority of ‘buy' signals on all relevant time-frames. Secondly, because of a recent test of the support at 1.5965, meaning the upward impetus should be still intact. But the sentiment of the market is currently bearish—69% of open positions are short.