Overview:
Recently, EUR/NZD is moving downwards. The price tested the level of 1.6361 in an average volume. In the daily time frame, we can observe a strong bearish bar in a volume below the average. Our strong trading range between the levels of 1.6515 and 1.6350 (support) was broken but the price created the bullish fake breakout (up-thrust). I had placed Fibonacci retracement to find potential support levels. I got Fibonacci retracement 38.2% at the level of 1.6425, Fibonacci retracement 50% at 1.6375 and Fibonacci retracement 61.8% at 1.6325. The short-term trend is bearish but mid and long-term trends are bullish. Since we got the fake breakout of trading range in the background , selling looks very risky. Watch for potential selling opportunities if the price breaks the level of 1.6350 in a high volume.
Fibonacci Pivot Points :
Resistance levels:
R1: 1.6575
R2: 1.6615
R3: 1.6683
Support levels:
S1: 1.6435
S2: 1.6395
S3: 1.6325
Trading recommendations: Fake bullish breakout of our trading range in the background. Buying EUR/NZD looks very risky. Watch for potential selling opportunities below the price of 1.6350.
The material has been provided by InstaForex Company - www.instaforex.com