Overview:
Recently, EUR/NZD has been moving upwards and then strongly downwards due to RBNZ cut rate by 25 bps. As I had expected, the price tested the level of 1.6744 (my profit target) in a high volume. Anyway, the price went down in an ultra high volume (selling climax) trading around the level of 1.6180 looks very risky. I have had placed Fibonacci retracement to find potential support. I got Fibonacci retracement 61.8% at the level of 1.6165. We may see potential re-testing of 1.6730 in the next period. Selling looks very risky.
Fibonacci Pivot Points :
Resistance levels:
R1: 1.6585
R2: 1.6670
R3: 1.6805
Support levels:
S1: 1.6315
S2: 1.6230
S3: 1.6100
Trading recommendations : Selling EUR/NZD at this stage looks very risky since the price is testing the major support cluster. Watch for potential buying opportunities on dips.
The material has been provided by InstaForex Company - www.instaforex.com