Overview:
Recently, EUR/NZD has been moving sideways around the price of 1.6380. The trend is neutral. We can observe a 14-day major support cluster around the 1.6150-1.6210 area. So, be careful when selling EUR/NZD before a breakout of the key support level takes place. In the the daily time frame, we can see neutral bars, which are a sign of an indecision market. The pair has broken our downward channel but with a very weak price action. A high-volume breakout at the level of 1.6150 will confirm further downward movements. The resistance is seen at the level of 1.6500. According to the M15, I found a massive volume spike (selling climax), and later on buyers supported potential absorption. So, be careful when selling at this stage because we may see potential recovery of the euro. Watch for a potential change in polarity. Anyway, the strong support at 1.6150 may become a strong resistance once it gets broken.
Fibonacci Pivot Points :
Resistance levels:
R1: 1.6405
R2: 1.6425
R3: 1.6460
Support levels:
S1: 1.6340
S2: 1.6320
S3: 1.6285
Trading recommendations: Selling looks risky at this stage so watch for potential buying opportunity on an intraday basis. Selling opportunities are preferable only if the price breaks the level of 1.6150.
The material has been provided by InstaForex Company - www.instaforex.com