EURNZD has formed lower highs and found support at the 1.7130 area, creating a descending triangle chart pattern on the 1-hour time frame. Price has just bounced off the bottom and might be due for a climb to the top around 1.7200.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. Then again, the moving averages are oscillating to reflect current consolidation conditions.

RSI is turning lower without even hitting overbought levels to signal that sellers are eager to return. Stochastic did turn from the overbought region to show that bears are taking over while buyers take a break.

In that case, EURNZD could make another attempt at breaking below the triangle bottom and triggering a selloff that’s about the same height. The triangle spans 1.7125 to 1.7300.

The euro has been on weaker footing since the ECB announcement as the central bank remained mum on the timing of their tightening. There were a few positive remarks pertaining to inflation, though, supporting their decision to trim asset purchases.

Meanwhile, the Kiwi is also on shaky ground due to risk-off flows. These have mostly stemmed from geopolitical risks and trade tensions between the US and China. Apart from that, downbeat expectations for the RBNZ decision later this week may be also weighing on the commodity currency.

New Zealand’s reports have yet to show strong improvements worth of a change in tone from the RBNZ. As it is, this central bank is behind its peers when it comes to shifting to a more hawkish tone.

As for the euro, there are no major catalysts this week as only medium-tier leading indicators are due. Still, it would be helpful to note the general direction of the results as it could provide clues on future top-tier releases.