The large-scale situation for the common European currency against the New Zealand Dollar has not changed. However, there has been a new development, as the pair has formed a junior pattern south.
This new junior pattern has guided the currency pair down for a breakout of the lower boundary of the dominant channel at 1.6864.
Although the pair is currently stranded between SMAs, but two scenarios are possible. First, the EUR/NZD pair could move past the support of the 200– hour SMA. This decline might be stopped by a support cluster near 1.6805. Second, the exchange rate might reverse to test the upper boundary of the junior pattern.
