The EURNZD has rallied on the back of New Zealand weakness, but given the uncertainty in the Eurozone I think this currency pair provides a great trade on the short side. Just keep in mind that the EURNZD may be the best carry trade currency pair right now given the big disconnect in interest rates.

The total downside potential is roughly 1,500 pips, but I will protect my profits with a stop loss before we get to that level. The move lower could be short, but very powerful especially after a breakdown below the low end of its resistance level.