A two-time winner this campaign, Streets Of Avalon has failed to fill a place just twice this time in, including a last-start fifth over 1200m at Caulfield on April 6.
“The leader probably went too hard and Michael (Poy) tried to back off from the leader but it went at too high-a-tempo,” Nichols said.
“I don't know if he would have run one-two anyway, but Nikita bowled them over and put an end to him.”
Nichols sees Saturday's 1400m against eight opponents as ideal, although the field could be reduced with Naantali and Dark Eyes also acceptors for races at Randwick.
“There doesn't look to be a high tempo in it so he should be on speed,” Nichols said.
“I'm glad Manolo Blahniq has drawn inside of us, although his last run was very good from an inside gate.
“He's third-up and primed while we're at our ninth run in and obviously hard fit, but we've had a lot of racing and at some stage he's going to run out of petrol tickets.
“Whether that's Saturday, or after Saturday, either way he'll go for a break regardless of how he performs.”
That break could be a brief one for a possible trip to Brisbane or extended with a view to the spring.
Concerning for Nichols is the gelding struggles to carry weight, although he reckons he is well handicapped on Saturday.
“With 56 (kg), he's run well with that before, but when he's up to 57 or 58, he just can't quicken like he does with 56,” Nichols said.