This pair will break out of the current channel and will head to 1.66. This move will hinge on the RBNZ dovish stance tomorrow. That's a "highly likely" event, I mean, a dovish RBNZ. EUR has seen sufficient decline in the last two days and if "Merkel debacle" is not moving it much lower, then it is signaling a move higher. So, even though I see USD strengthening, it will be more versus NZD and less versus EUR, so in effect, EURNZD could move higher.
Comment:
RBNZ policy event is just 4 hrs away... just be careful. Right now, EUR looks weaker than NZD. All this could change at 4pm EST