The common European currency has surged by 3.63% against the New Zealand Dollar since May 10. A breakout occurred through the upper boundary of a descending channel pattern during last week's trading sessions.
Technical indicators suggest buying signals. Therefore, the currency pair could continue to trend bullish within this week's trading sessions. The exchange rate could target the 1.8800 area.
However, the EUR/NZD currency exchange rate could make a brief retracement towards the 50– and 100– period simple moving average at 1.7920 during the following trading sessions.