EUR/NZD bulls aim for ascending channel’s ceiling

EUR/NZD is trading in an ascending channel on the four-hour chart after the 50-exponential moving average crossed over the 200 EMA. Moreover, the positive slope of divergent moving averages indicates a strengthening bullish Momentum in the short term. In addition, the candlestick bars suggest that Euro buyers have taken control of the European morning trading session by accelerating upward bias. Currently, they are attempting to push the price towards the channel ceiling around 1.65 after defeating the 1.63980 resistance level. If this barrier can halt the rally, we may see a price consolidation for some time. With a sustained move above this level, the 1.65873 mark could come under the spotlight.

Otherwise, if sellers take cues from the price at the ascending channel resistance, the pair could return to the support area between 1.63539 and 1.63980. If this area is broken, the probability of falling to the 50-EMA will increase. However, as long as the price floor of 1.60736 remains intact, the uptrend will continue.

Short-term momentum oscillators indicate that buyers are dominating the market. The RSI is approaching 70 in the buying area. Despite falling from a three-day peak, the Momentum is still above the -100 line. Positive MACD bars are also rising above the signal line. However, a divergence between price and oscillator occurred on May 2 compared to April 25, suggesting a probable waiting period for buyers.