© Dukascopy Bank SA
Following EUR/NZD's failure to ascend beyond the round level at 1.70 during the last days of December, the exchange rate came under strong selling pressure, which in the end led to formation of the downward-sloping channel on the four-hour chart.
Considering that last week the pair confirmed firmness of the falling resistance line, the Euro is expected to lose even more ground, as it is yet to slide down to the lower trend-line at 1.61, where in turn demand can initiate a bullish correction. Meanwhile, market participants do not seem to be decided with respect to the price's future—44% of them are long and 56% are short towards it.
© Dukascopy Bank SA