Overview :
Recently, EUR/NZD has been moving downwards. The price tested the level of 1.62154 in a high volume. In the daily time frame, we can observe a supply bar in a high volume, which is a sign of weakness. In the daily time frame, I placed Fibonacci expansion levels to find a potential downward station. I got Fibonacci expansion 161.8% at the price of 1.5990 (downward traget). There are few technical reasons for this strong downward pressure.
1. Massive upthrust in an ultra-high volume bar in the background (supply overcame demand)
2. Another upthrust bar from the same zone
3. Confirmed double-top formation
Watch for potential selling opportunities on rallies. I found a solid selling zone around the price of 1.6315-1.6370.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6420
R2: 1.6470
R3: 1.6545
Support levels:
S1: 1.6260
S2: 1.6215
S3: 1.6135
Trading recommendation for today: Watch for potential selling opportunities on rallies.
The material has been provided by InstaForex Company - www.instaforex.com