Overview:
In our last analysis, EUR/NZD has been trading downwards. As we expected, the price rejected from the level of 1.6035 and tested the level of 1.5641. According to the daily time frame, we can observe supply in an ultra high volume (selling climax), which is a sign that selling EUR/NZD at this stage looks very risky and that we may see a potential absorption phase. According to the 4H time frame, we can oberve a bullish corrective phase. I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1.5790 and Fibonacci retracement 61.8% at the price of 1.5885. If the price breaks breaks the level of 1.5820, we will have an absorption volume. Anyway, if we don't see an absorption volume. If we see larger reaction from sellers and bearish continuation, our next down station will be around the price of 1.5515.
Daily Fibonacci pivot levels:
Resistance levels:
R1: 1.5896
R2: 1.5971
R3: 1.6092
Support levels:
S1: 1.5654
S2: 1.5579
S3: 1.5458
Trading recommendations: Be careful when selling EUR/NZD since we got strong selling climax in the background.
The material has been provided by InstaForex Company - www.instaforex.com
