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EURNZD made a big, overlapping drop from 1.993 high, suggesting that trend is changing to bearish, for a minimum three-wave move. We see a completed Elliott wave leading diagonal in wave A)/1) at 1.765 level, from where price started rallying on lower degree time frames. Ideally an A-B-C correction of wave B)/2) is underway and can face first potential resistance and reversal zone at 1.85 level (Fib. ratio of 38.2), however because price unfolded an Elliott wave leading diagonal in the first leg, then resistance for the unfolding correction can still be reached at 1.914 level (Fib. ratio of 61.8). In any case, further weakness, for a third wave of a decline from the highs at 1.993 level is still expected once current correction fully develops.

EURNZD, daily

On lower degree time frame chart, we see price in a sharp, however corrective a-b-c move for wave B, which is now approaching possible support at Fib. Ratio of 61.8 (1.788 level), and area of a former wave iv) at 1.787 level, which can also react as good support for the bigger, unfolding correction. That said, a rally in five waves of a lesser degree, and above 1.803 level would be bullish for price.