Overview:
In our last analysis, EUR/NZD has been trading upwards. The price tested the level of 1.6198 in an average volume. EUR/NZD is in a bullish corrective phase, so I have placed Fibonacci expansion to find potential resistance. I got Fibonacci expansion 100% at the price of 1.6190 (held successful) and Fibonacci expansion 161.8% at the price of 1.6290. According to the 4H time frame, we can observe lack of demand around our Fibonacci expansion (1.6190), which is a sign that buying EUR/NZD at this stage looks risky. We also got an absorption volume in the background, which makes EUR/NZD very risky for mid-term buying. Anyway, if the price breaks the level of 1.6190 in a high volume and strong price action, we may see testing the level of 1.6255 (swing high like resistance)
Daily Fibonacci pivot levels:
Resistance levels:
R1: 1.6202
R2: 1.6243
R3: 1.6310
Support levels:
S1: 1.6068
S2: 1.6027
S3: 1.5960
Trading recommendations: Be careful when buying EUR/NZD pair since our Fibonacci expansion 100% held successful
The material has been provided by InstaForex Company - www.instaforex.com
