EURNZD is still in the middle of its pullback and is already testing the 38.2% Fibonacci retracement level on its 4-hour time frame. A larger correction could reach the rising trend line support that coincides with the 50% Fib.

This is also right around the 1.6500 major psychological mark, which might be a strong support level to attract buyers. The 61.8% level is at 1.6434, which is near the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse. If any of the Fibs are able to keep losses in check, EURNZD could resume the climb to the swing high around the 1.6850 minor psychological mark.

Stochastic has a bit of room to head lower before reflecting oversold conditions or exhaustion among sellers. This suggests that the correction could keep going for the time being until the oscillator turns higher.

RSI has more ground to cover before reaching the oversold area, which means that bearish pressure could stay in play for a while.

The euro has been drawing some support from safe-haven flows, as traders are dumping higher-yielding currencies with risk aversion in play. Investors are wary of a likely recession in China since country is ramping up its zero-COVID policies.

In turn, this could lead to weaker business activity and potential supply chain woes, which would then hurt commodities and commodity currencies like the Kiwi.

Earlier in the week, New Zealand reported a slight uptick in quarterly inflation expectations, which might mean another set of rate hikes from the RBNZ.

There are no major reports lined up from both the eurozone and New Zealand economies for the rest of the week, so EURNZD could keep taking cues from market sentiment.