On H4 chart EUR/NZD pair breaks through the support area at 1.5690. Thus, a new lower low was established and a clear change in momentum was made. Successful breaking of mentioned area opens way for further declines. Key support for this scenario is the area (1.5241 – 1.5385) set by bullish gap that emerged after the first round of presidential elections in France.
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Bearing in mind the above, there is potential for more than 300 pips move south. In this case, it is worth waiting for a deeper closure under the support, which will confirm its breaking. The opportunity to go short can then be back to moving average (20 SMA).
