Since establishment of the maximum around 1.6632, which took place at the end of last month, the EURNZD has slowed down in the last rally. Despite two consecutive attempts to overcome resistance at 1.6632, the sellers failed to close above that level.
In turn, the current month began with a narrow consolidation slightly over 20-period SMA. Yesterday, however, there was an effective breakthrough, and the dynamic downward movement led the quotes to new minimum.
Bearing in mind the above, it can be assumed that the momentum on this pair starts to change. Currently a rebound is taking place and the price is approaching 20-period SMA which is now a dynamic resistance.
The bearish signal during SMA test and the local resistance area shown in the chart below may indicate the return of the supply. Then the nearest destination for the declines will be at yesterday minimum. Another important support is the area close to 1.6330 where falls 50% of the last growth impulse.