EURNZD has formed lower highs and lower lows connected by a descending trend channel on its hourly time frame. Price is bouncing off the resistance around the 1.7600 mark once more and might be ready to resume its slide.

The Fibonacci extension tool shows the next potential downside targets. The 38.2% level is holding as support around 1.7532 while the 50% level is near the mid-channel area of interest at the 1.7500 major psychological mark.

Stronger bearish pressure could take EURNZD down to the 61.8% Fib extension at the 1.7472 level or the 76.4% level at 1.7436. The full extension lines up with the swing low and channel support near the 1.7400 major psychological mark.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. The 200 SMA even lines up with the channel top to add to its strength as a ceiling.

However, stochastic is on the move up after just pulling higher from the oversold region, suggesting that bullish pressure is picking up. RSI appears to be heading lower to confirm a return in selling momentum.

The euro has drawn support from the hawkish ECB statement that featured a 0.25% hike as expected and hints of another rate hike in July.

In contrast, the Kiwi might be under downside pressure due to fading hopes of another RBNZ hike. After all, the latest quarterly GDP put the economy in technical recession and analysts are downgrading growth forecasts for the rest of the year.

Still, risk appetite has been in play mostly due to downbeat Chinese data spurring hopes of more policy stimulus from the PBoC. This could later on translate to stronger business and consumer activity, which then lifts demand for commodities.