The common European currency is losing value against the New Zealand Dollar in a medium scale rather narrow descending channel. However, the situation is about to change soon, as the pair is approaching the lower trend line of a larger pattern's lower trend line. It is most likely that the currency pair will support in the line and begin a surge, which will result in the formation of a new medium term pattern. Although, until the mentioned dominant trend line lies a distance of almost 100 base points. Meanwhile, SWFX market sentiment support the hypothesis of the continuation of the decline in the short term, as the pair is neither overbought nor oversold with 58% of trader open positions being short.
| Level | Rationale | Indicator | 4H | 1D | 1W | |||
| R4 | 1.6107 | Weekly R1 | MACD (12; 26; 9) | Sell | Buy | Buy | ||
| R3 | 1.5937/50 | 55 and 100-period SMA; weekly PP | RSI (14) | Neutral | Neutral | Sell | ||
| R2 | 1.5808/38 | Trend line; 23.00% Fibo | Stochastic (5; 3; 3) | Sell | Neutral | Sell | ||
| R1 | 1.5767 | 200-period SMA | ADX (14) | Sell | Neutral | Neutral | ||
| S1 | 1.5684 | Weekly S1 | CCI (14) | Neutral | Buy | Neutral | ||
| S2 | 1.5639/23 | Monthly PP; trend lines | AROON (14) | Buy | Buy | Buy | ||
| S3 | 1.5589 | 38.20% Fibo | Alligator (13; 8; 5) | Sell | Neutral | Buy | ||
| S4 | 1.5528 | Weekly S2 | SAR (0.02; 0.2) | Sell | Sell | 0 | ||
| Aggregate | ↘ | ↗ | → |