NZD/USD 4H Chart: Channel Down

The medium-term outlook for the Kiwi against the Greenback is quite mixed at the moment. The pair has been continuing to rebound last week, thus  gradually approaching the upper trend-line of the channel down pattern. Bulls are additionally supported by positive market sentiment, which is favouring an appreciation of the Kiwi in 71% of all cases. Despite that, NZD/USD is experiencing difficulties with crossing the 55-period SMA at 0.67, which is strengthened by weekly PP. In case bulls fail, the pair will immediately lose its bullish momentum, and a drop down to the monthly S1 at 0.6598 may follow. This scenario is in turn shared by the daily indicators.