The common European currency has appreciated substantially against the New Zealand Dollar since February. This bullish movement has been constrained by a nine-month ascending channel. During the past few days, however, this bullish sentiment has not been so idiosyncratic, as the rate was trading sideways.
A strong resistance cluster set by the monthly pivot point with the combination of the 100– and 200– hour SMAs near 1.6914 was restricting the EUR/NZD pair from making any upwards moves.
Given that the currency exchange rate has moved closer to the lower boundary of a medium-scale triangle, a breakout is likely to occur during the following trading sessions.
