Bearish momentum has been dominating the common European currency against the New Zealand Dollar since October 16. A breakout occurred through the lower boundary of a dominant ascending channel pattern at 1.7389 during last week's trading sessions.
Given that a breakout had occurred, bears could continue to drag the price further south during this week's trading sessions. The potential target for the EUR/NZD pair will be at 1.7089.
However, a support cluster formed by the weekly S1 and the monthly S1 at the 1.7263 area could provide support for the currency exchange rate in the shorter term.