• EURNZD rejected the 1.7100 resistance.
• ECB meeting coming up on Thursday.

The EURNZD is trading lower at around 1.7000 down % as the 5-Star Movement and the Northern League, the winners of the Italian parliamentary elections, are struggling to form a coalition and are stuck in a political deadlock that can potentially last weeks according to political analysts.  

The ECB meeting scheduled on Thursday is likely the key event of the week for the Eurozone and Mr. Draghi and his colleagues are expected to leave the key policy measures unchanged. 

Additionally, for the Eurozone, Wednesday will see the GDP numbers. Earlier in the week on Monday, the Eurozone retail PMI rose to 52.3 in February, up from 50.8 in January.

New-Zealand will announce its Global Dairy Trade (GDT) on Tuesday and its Manufacturing sales numbers on Wednesday. 

The EUR/NZD has retraced about 120 pips from the multi-month resistance at 1.7100. It is now trading around 1.7000. Less than 40 pips below is the 23.6% Fibonacci level at 1.6957 which can provide support. Further down, the 1.6873 level with the 38.2 Fibonacci retracement is the next support. To the upside, the 1.7100 level is the key resistance to be broken if bulls want to see higher prices. Higher up, 1.7200 and 1.7300 are the key psychological resistance. 

EUR/NZD 4-hour chart