Montlhy Chart:
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Additionally, a channel down formation has been sketched on a monthly basis with the help of an additional trend-line that restricts the pair's movements from the upside. The pattern implies that the bear trend will continue.
Daily Chart:
© Dukascopy Bank SA
The same pattern can be observed on the daily time-frame, implying a similar trend in the short-term as well. In the 30 minute chart, however, as rising wedge has been formed, signalling a reversal from the shorter-term uptrend, meaning that the pair could lack bullish momentum to reach the upper trend-line of the channel, suggesting that the bear market will remain strong further on.
30 Minute Chart:
© Dukascopy Bank SA
EUR/NZD strength unclear, could retire senior downtrend
There seems to be, however, quite some bullish potential for the pair, at least form the technical point of view. 100-period and 55-period SMAs give a decent push towards the 200-period SMA and weekly R1 cluster at 1.5450 and the upper channel trend-line at 1.5474 after that. Bollinger Bands have been stretched to almost match the channel trend-lines, and the current location of the currency pair implies that trader sentiment is strongly positive, a claim backed by actual SWFX sentiment data as well.
SWFX Sentiment Data:
© Dukascopy Bank SA
While this morning's data release on the Italian Quarterly Unemployment rate changed almost nothing in the market, as the figures came exactly as expected, volatility could be up in Monday evening upon the New Zealand monthly FPI announcement. Tuesday is quite unlikely to leave markets calm as a set of European economic data as well as Draghi's speech will come out hours before New Zealand's current account information is released.
Aggregate Technical Indicators:
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