NZD/CAD 4H Chart: Channel Up

After being directionless during the last quarter of 2013 the New Zealand Dollar resumed appreciation relative to its Canadian counterpart. As a result, the currency pair has already covered 10 figures since Jan 1 and seems to be ready to continue the bullish motion. Accordingly, as long as the rising support trend-line at 0.9446 remains intact, there are good reasons to expect a surge up to 0.9850, the current location of the upper edge of the corridor. At the same time, market participants do not seem to convinced that kiwi is going to increase in value—75% of them are presently holding short positions on the currency, leaving bulls in a distinct minority.