Dukascopy Bank Team
Dukascopy Bank SA
NZD/USD 4H Chart: Channel Up
Comment: NZD/USD has managed to rebound from 0.66, thus keeping the bullish channel intact. However, the currency pair is now facing a tough resistance area at 0.6770/40, which consists of the weekly and monthly R1s in addition to the latest highs. Still, considering that the four-hour and daily indicators are pointing north, the price should eventually climb higher. If this is the case, the next target will be the upper edge of the pattern. At the same time, a close beneath 66 cents will imply continuation of the sell-off, potentially down to 0.6350, namely the January low. Meanwhile, the sentiment is on the verge of becoming bullish, as 55% of traders are long and 45% are short the Kiwi.
EUR/NZD 1H Chart: Channel Up
Comment: Although the New Zealand Dollar is set to appreciate against the Greenback, it seems the currency will underperform the Euro. The pair has just confirmed the lower trend-line of the channel, meaning we are highly likely to see a rally towards 1.7275, where the upper boundary of the pattern is reinforced by the January high. Alternatively, if the bears manage to push the price under the green trend-line, the February 11 low, the 200-hour SMA, and the weekly PP, the outlook will be changed to bearish with the new objective at 1.0515, which is the February 3 low. As for the sentiment, a majority of market participants prefer to hold long positions, namely 61% of them.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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