Overview:
Recently, EUR/NZD has been moving upwards. As I expected, the price has reached and rejected strongly from our take-profit zone at the level of 1.5835. In the daily time frame, I found a supply bar and confirmed formation of a strong head-and-shoulders pattern (a broken neckline). In the H4 time frame, the price rejected strongly our 200 SMA (1.6180) and created bearish outside bar from 200 SMA. According to the daily time frame, I found testing of the 200 SMA. I expect further downward movement and retesting of 1.5850 and even potential breakout to the downside.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.5960
R2: 1.6000
R3: 1.6060
Support levels:
S1: 1.5845
S2: 1.5810
S3: 1.5750
Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price rejected strongly our 200 SMA in the H4 and daily time frames. Watch for potential selling opportunities.
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