EUR/NZD 4H Chart: Channel Down

As EUR/NZD proved to be unable to advance beyond the resistance at 1.6673 late February, it started to decline. Eventually, the currency couple formed a downward-sloping channel, since it was consistently respecting two parallel falling trend-lines. However, the upper edge of the pattern still appears to be unreliable, but the fact that it is strengthened by the 200-period SMA increases the chance that the exchange rate will not be able to cross the level of 1.64 in the foreseeable future. Moreover, the sentiment in the market is noticeably bearish—seven out of ten traders expect to profit from depreciation of the Euro relative to the New Zealand Dollar.